Echo Hu/ Shanghai Daily news

Four overseas banks were granted business registration licenses yesterday, which formally allows them to offer unlimited yuan services on the Chinese mainland next week after they incorporate locally.

City mayor Han Zheng, who was present at yesterday's license-granting ceremony, extended congratulations to the four overseas banks and welcomes more participation from overseas financial institutions in the city's building into an international financial center.

The Shanghai Industrial and Commercial Administrative Bureau issued the business registration licenses.

According to the commitment China made to the World Trade Organization, China's banking sector began to fully open to foreign capital on December 11, 2006. After receiving the approval from the supervision watchdog, the four banks will gain the same status as domestic banks to conduct a variety of financial activities including RMB business.

The local incorporation of the first batch of overseas banks will largely boost Shanghai into an international financial center, according to insiders.

Also yesterday, the four banks were granted business registration licenses for 20 provinces and municipalities across China.

Shanghai boasts the most foreign financial institutions in China. So far, a total of 340 overseas financial institutions have registered in the city.