Financial institutions from overseas that want to open branch offices in China's financial hub Shanghai can now directly register at the local industry and commerce administration, a senior official has announced.

"The State Administration for Industry and Commerce has authorized us to exercise direct registration and management of the branches of overseas financial institutions," said Zhou Houwen, deputy director of the Shanghai Municipal Administration for Industry and Commerce.

All financial institutions with overseas funds used to be required to go to the Chinese capital of Beijing to apply for registration or undergo annual examination, which cost much time and money.

According to Zhou, 11 overseas-funded banks, including the Hang Seng Bank, the Hong Kong and Shanghai Banking Corporation Limited and the Chartered Bank, have directly registered their branches in Shanghai and obtained business licenses.

"This new policy cut the time for registration by half and helped us raise efficiency," said Daniel Leong, executive of the China Branch of Chartered Bank.

With China's entry into the World Trade Organization (WTO), overseas-funded financial institutions have stepped up their efforts to establish branches in China in pursuit of a greater market share. By late October 2003, 60 overseas-funded banks had opened branches in Shanghai, with total assets worth US$25.34 billion.

(Xinhua News Agency January 25, 2004)