BEIJING, Jan. 27 -- China¡¯s banking regulator had approved Hongkong & Shanghai Banking Corp., the Asian arm of HSBC Holdings, to upgrade its representative offices in the western Chinese cities of Chongqing and Chengdu to full branch status, HSBC said Wednesday.

    The move increases HSBC¡¯s branch network in China to 12. Most of the branches are along China¡¯s more developed eastern seaboard.

    ¡°Chongqing and Chengdu have enjoyed rapid economic growth thanks to China¡¯s ¡®go-west¡¯ campaigns...So we¡¯re delighted to upgrade our offices into full branches,¡± said Dicky Yip, the bank¡¯s chief executive China business.

    The Chinese Government has issued a series of supportive economic policies for western China and encouraged investors to ¡°go west¡± to aid its development.

    Last week, the China Banking Regulatory Commission said 116 foreign banks were approved to offer services in the Chinese yuan and 18 cities nationwide had been opened to foreign banks to conduct yuan services.

    China will fully open its banking sector to foreign competition by the end of 2006, as part of its commitments to the World Trade Organization, which it joined in December 2001.

    (Source: Shenzhen Daily/Agencies)