With China's entry into the WTO, competition
for market shares among foreign financial institutions based
in Shanghai, one of China's economic powerhouses, has become
more intensive than ever before.
will take months to have their applications approved on
handling foreign exchange business for local residents, the
53 foreign financial business institutions in Shanghai are
stepping up preparations for the business.
Meanwhile, ten more foreign financial
institutions have submitted applications to upgrade their
representative offices into profit-making institutions.
A recent survey shows that most investors in
Shanghai are very interested in foreign banks, which are
known worldwide and have better services and technology than
Statistics show that at the
end of September, the total assets of the 53
business-oriented foreign financial institutions in Shanghai
had reached 23.1 billion US dollars, accounting for half the
foreign financial institutions assets in China.
In the third quarter of this year alone,
branches of foreign banks based in Shanghai registered a
total post-tax profit of 55.7 million US dollars.
The fast moving foreign financial institutions
are causing concern among their Chinese counterparts.
According to President Zhou Lu of the Shanghai branch of the
Bank of China, the forceful entry of foreign banks into the
city has created pressure among Chinese financial
In order to meet the
competition, an inter-cooperative wave has started among
Chinese banks in Shanghai. The State Development Bank and
the Shanghai Pudong Development Bank, for instance, recently
agreed to work together in major business operations
including financing key state projects.