MILAN - The world's largest bank, Industrial and Commercial Bank of China (ICBC), inaugurated its first Italian subsidiary in Milan on Friday.

At the official opening ceremony, ICBC President Jiang Jianqing said the establishment of ICBC Milan will help bridge the two countries in trade, economic, cultural and tourism cooperation.

"Over 40 years after the establishment of diplomatic relations between China and Italy, the two countries have achieved remarkable progresses in their exchanges," Jiang said during a gala dinner organized in Mezzanotte Palace, seat of the Milan Stock Market.

"Currently there are nearly 400,000 Chinese citizens coming to Italy every year and there are over 2,500 Italian enterprises investing in China," he said in front of some 300 guests from China and Italy.

Economic Development Minister Paolo Romani stressed that the opening of the new subsidiary will further extend the existing financial cooperation between China and Italy, encouraging enterprises to augment their mutual investment.

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According to Chinese Ambassador to Italy, Ding Wei, the total volume of trade exchange between the two countries grew from $15.7 billion in 2004 to $45.1 billion in 2010.

ICBC's choice to open its first Italian subsidiary in Milan, he added, was a recognition of the city' s financial position in the world.

Milan Mayor Letizia Moratti together with other authorities jointly pressed a red button to symbolically launch the new subsidiary of the Chinese bank.

On Monday, the ICBC head announced in Luxembourg the establishments of five European branches in Paris, Brussels, Amsterdam, Milan and Madrid.

After opening, ICBC new subsidiaries will deliver universal financial services to Chinese and European customers, acting to promote the economic, trade and investment relations between China and Europe.

ICBC has about 3.6 million business clients. Its global service is supported through operations in 28 countries and regions with 203 branches in total. Outside China, the bank employs 4,700 local staff.