China's major state-owned banks plan to set up second headquarters in Shanghai, which will help the city grow as a global financial center, Shanghai Vice Mayor Tu Guangshao said Thursday.
The Bank of China has already submitted a written proposal for its Shanghai headquarters. The lender's Shanghai headquarters will focus on non-credit services, which will differentiate it from the Beijing headquarters.
Other major state-owned banks are also poised to set up similar offices in Shanghai.
China's big-four banks - the Industrial and Commercial Bank of China, the Bank of China, the Agricultural Bank of China and China Construction Bank - are all based in Beijing.
"Shanghai needs support from big-name financial institutions to achieve its goal of becoming a global financial center," Tu told a forum in Shanghai. "Regulators have already reacted positively to the idea, but it still needs to go through the process for approval."
As China's financial market evolves, banks are endeavoring to trim their reliance on loans and diversify income channels.
China has made it a national strategy to create a global financial and shipping center in Shanghai by 2020.
Chinese banks have already set up Shanghai departments for bank cards, capital and asset management.
The AgBank has also set up its fund management affiliate and financial leasing company in the city.
The People's Bank of China, the central bank, set up its Shanghai headquarters in 2005 to better supervise the industry.
The Beijing headquarters of the central bank focuses on drafting policies and decision making while the Shanghai headquarters implements open-market operations, conducts market research, collects financial data and coordinates with other financial agencies like the foreign exchange center.
