Foreign Financial Institutions Step Up Investment in Shanghai

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Last updated at: (Beijing Time) Saturday, December 15, 2001

Foreign Financial Institutions Step Up Investment in Shanghai

Allured by the tremendous market potential following China's accession to the World Trade Organization, over a dozen banks based in Europe, the United States and Japan have applied to upgrade their agencies in China to business organizations over the past month.

This has triggered a new round of investment fever by foreign financial institutions in Shanghai, said a source from the Shanghai branch of the People's Bank of China (PBC).

A number of foreign banks and non-banking financial institutions, including monetary brokerages, credit card companies

and asset management companies, have expressed their desire to start business in China or upgrade their existing agencies to business organizations, in light of the increasing demand for corporate financing and cross-border banking services following China's WTO entry, said the PBC official.

"This shows that foreign financial institutions are optimistic about China's market, and have adjusted their business strategies accordingly," he said.

Shanghai will remain a top choice for most foreign financial institutions which seek to start business in China, as the country's WTO accession will highlight Shanghai's status as an economic and financial center, he added.

Statistics show that by the end of November this year foreign financial institutions had set up 53 business organizations in Shanghai, most of which report good performances.

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