Huaxia Bank and Deutsche Bank aim to issue a co-branded credit card in China in May, a move that will help Germany's top lender expand its access to the country's fast-growing retail banking business.

Deutsche Bank was assisting Huaxia in setting up a joint credit card centre in Beijing, and preparations for launching the card had almost been completed. Huaxia is applying to the Chinese banking regulator for the card issue.

Huaxia set May as its internal target month to issue the card. There should be no problem for the bank to win regulatory approval soon," said one source who was briefed on the situation after Huaxia held its annual management meeting last month.

"It's not only about just one card, but a whole new business that Huaxia has been eager to do for many years," said the source, adding the co-branded card would be Huaxia's first credit card since the bank was established in Beijing in 1992.

Deutsche Bank bought nearly 10 percent of Huaxia for about $235 million in late 2005, when the two partners cited credit cards as one area of their cooperation. If approved, the co-branded card would make Deutsche Bank the fourth foreign lender to issue a card in partnership with a Chinese bank.

Foreign financial firms are not allowed to issue any type of bank cards in China independently. Citigroup Inc. , HSBC Holdings Plc and Hong Kong's Hang Seng Bank have already issued their co-branded cards in China.

Other foreign banks, including Bank of America and Royal Bank of Scotland, are working on similar plans to issue cards with Chinese partners. Deutsche Bank declined comment, while Huaxia Bank was not immediately available for comment.