Overseas banks operating in China's mainland are lining up to announce major expansions in their business scope.  

Eddie Wang, president of Hong Kong and Shanghai Banking Corporation's business in China, said that to further expand in China's mainland, the corporation has applied to the People's Bank of China, China's central bank, for permission to open its second sub-branch in Shanghai.  
Wang said the Shenzhen Branch of the banking corporation recently opened financial management services and the Shanghai Branch will provide such services in June this year.  

The Shanghai Branch of Citibank, which is located in the Pudong New Area, has been approved by the central bank to provide foreign currency services to both Chinese citizens and foreigners in the mainland, thus becoming the first solely foreign-funded bank to open such services.  

Bank sources said that a branch of the Citibank in the Puxi Area of Shanghai went into operation last week.  

The expansions reflect an optimistic attitude toward the banking businesses in China after it became a full member of the World Trade Organization (WTO). 

According to its commitments for WTO entry, China will gradually lift its restrictions on overseas banks doing businessesin China.  

In February this year, China issued two circulars on the management of overseas financial institutions in China and on detailed implementation methods which worked together to provide policy guidance for foreign banking companies doing RMB business in China.  

Many overseas banks operating in China responded actively to the statutes, applying for permission to open both foreign currency and RMB businesses. They include Hong Kong and Shanghai Banking Corporation and Citibank, among others.  

Some overseas banks such as Heng Seng Bank of Hong Kong and J.P.Morgan Chase & Co. have or are preparing to submit applications for running their own currency businesses.  

(sinoprojects.com)