The Shanghai-based Bank of Communications has chosen Sydney for its first Australian branch, pending approval from the Australian Prudential Regulatory Authority.

New South Wales Development Minister Ian Macdonald said on Thursday the move showed Sydney had overtaken Melbourne as the nation's financial hub.

"This is the latest endorsement of Sydney as Australia's financial capital and as a leading financial center in the Asia Pacific," he said.

"The NSW government places a high priority on further developing Sydney as a global business and financial center in the Asia Pacific."

The Bank of Communications vice president Peng Chun said the bank plans to expand its Australian operations.

"Sydney is a good choice for the bank because the city has a well-developed financial services sector," he said.

"It will be an important addition to the bank's global network."

(Xinhua News Agency July 31, 2009)