The move follows Standard Chartered's cornerstone investment of $500m in AgBank's record-breaking initial public offering in Hong Kong earlier this year.
The joint venture focuses on several key areas, according to a statement by AgBank. Under the tie-up, the two banks will collaborate to give support to China's fast-growing small and medium-sized businesses, and AgBank will give priority to Standard Chartered for its trade and cash management businesses. The two banks will also form a partnership for cross-border business.