London (CNN Business) A foreign bank has been given access to a key piece of China's financial system for the first time.

Standard Chartered ( SCBFF ) said Monday that it is the first foreign lender to receive permission to hold and safeguard the assets of local investors in China.

The license granted by the China Securities Regulatory Commission allows the bank to act as a custodian for investment products sold by both international and local asset managers and funds.

Standard Chartered is based in London but focuses on emerging markets. Its shares jumped nearly 2%.

"This is a big step forward in the further opening up of China's domestic financial markets and a testament to our commitment to supporting China's financial reform and innovation," Jerry Zhang, CEO of Standard Chartered in China, said in a statement.