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.

Although it 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 domestic banks.

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 institutions.

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.