Woori Bank, the second-largest commercial bank in South Korea, opened its Shenzhen branch Monday, as part of its drive to tap the city's rapidly growing banking market.

Woori Bank's expansion underscore foreign bankers' determination to gain a larger slice of the city's foreign banking market, which recorded increased pre-tax revenues of US$48.4 million by the end of June, up US$38.33 million compared with the end of 2004.

Hong Kong-based Nanyang Commercial Bank Ltd. was the first overseas bank to set up a presence in China when it opened its Shenzhen branch in January 1982. Beginning last year, the city's banking sector has benefited greatly from the Closer Economic Partnership Arrangement (CEPA), a free trade pact signed between Hong Kong and the mainland.

Three Hong Kong banks opened branches in Shenzhen last year: Wing Lung Bank Ltd., Dah Sing Bank Ltd. and Shanghai Commercial Bank Ltd.

Zhang Siping, Shenzhen's vice mayor, said the financial sector was one of the four basic industries in Shenzhen. Many foreign banking giants, including the U.S.-based United Commercial Bank and Japan's Bank of Tokyo-Mistubishi had expanded their businesses in the city.

To date, there are 31 foreign banks in Shenzhen, the second-largest number nationwide, according to Zhang.

There are 19 foreign banks operating yuan business in Shenzhen, 11 of which can offer yuan services to business, including CitiBank, HSBC, Bank of East Asia and Standard Chartered Bank.

According to figures released by the China Banking Regulatory Commission's Shenzhen Office, there were 38 foreign financial institutions in the city by the end of June. 

(Shenzhen Daily July 27, 2005)