Chinese and foreign commercial banks now have 30 operating centers in Shanghai according to latest figures released by the Shanghai Banking Regulatory Bureau.

 

The operating centers report directly to the head offices of the commercial banks. They have independent and specialized operations and centralized management.

 

The grouping of these operating centers in Shanghai is an important part of the city's efforts in the past two years to become a global financial center. Financial insiders believe it's an inevitable trend in the development of the financial marketplace and a strong driving force in the reform of China's commercial banking systems.

 

In 2005 the operating centers of Chinese and foreign commercial banks in Shanghai, taking advantage of their business specialization and intensification, have become market leaders in their various financial fields.   

 

The paper business center of the Industrial and Commercial Bank of China (ICBC), which has been in operation for five years, has continuously maintained a prime spot in the market. 

 

The capital operation center of the Industrial Bank, set up just over a year ago, completed the first 'bond forward' transaction in the inter-bank bond market in June 2005 and the first foreign currencies trading after such transactions was allowed in May 2005. The bank's transaction capability and subsequent market prestige have been enhanced as a result.

 

Financial insiders say the establishment of these operating centers is an innovation in the operating techniques of commercial banks. The centers are recognized as playing a positive role in the creation of new products and services that are considered innovative in the world of commercial banking.

 

Credit card, capital trade and data centers form the largest part of the business. ICBC, Agricultural Bank of China (ABC), Bank of China (BOC), China Construction Bank (CCB) and Bank of Communications (BOCOM) have located the majority of their operating centers in Shanghai.

 

To add to all this banking activity in Shanghai some joint-stock commercial banks such as the Industrial Bank and China Merchants Bank plan to add new types of services to their already operational centers, while some Sino-foreign joint-stock commercial banks are keen to set up their own operating centers in Shanghai.

 

(China.org.cn by Yuan Fang, February 24, 2006)