The Federal Reserve Board's landmark decision to allow China's largest bank to acquire branches in New York and California is likely to trigger further expansion by Chinese banks into the U.S. market, according to Fitch Ratings.

The Fed last month gave Industrial and Commercial Bank of China in Beijing the nod to buy 13 branches here from the U.S. subsidiary of Bank of East Asia in what was its first-ever approval of an acquisition by a Chinese-government-controlled bank. It also approved plans of two other state-owned banks to build branches in New York and Chicago.

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