Wal-Mart, the world's largest retailer, plans to move its Asian headquarters from Hong Kong to Shenzhen, a city in south China's Guangdong Province, in 2006.

The construction of the new headquarters building in Shenzhen is underway, according to the Shenzhen International Investment Commercial Property Co. Ltd, Wal-Mart's partner in China.

The new building will be put into use by August 2006, said DingLiye, general manager of the company.

Ding said besides Shenzhen's location neighboring Hong Kong, support from its Chinese partners and local government also helped Wal-Mart decide to move its Asian headquarters.

China is becoming an attractive market for world retailers thanks to its fast economic growth and huge potential market. Thirty-five of the world's top 50 retailers do business in China.

As a result of its agreement for entry into the World Trade Organization, China completely opened its retail industry by the end of 2004. Complex procedures are no longer required for overseas retailers to enter the China market.

Wal-Mart has opened more than 40 outlets in major Chinese cities, including Shenzhen, Beijing, Harbin and Nanjing, since itsentry into China in 1996. The retailer employs more than 20,000 employees in the country.