BEIJING, Dec. 24 (Xinhua) -- The China Banking Regulatory Commission (CBRC) announced on Sunday it has approved nine foreign-funded banks to transform their Chinese branches into locally incorporated banks registered on the mainland.

    The nine banks, all to be registered in Shanghai, are the Standard Chartered Bank, the Bank of East Asia, the Hongkong and Shanghai Banking Corp., the Hang Seng Bank, the Mizuho Corporate Bank, the Bank of Tokyo-Mitsubishi UFJ, the DBS Group, Citibank and the ABN Amro Bank.

    Statistics show the Chinese branches of the nine banks accounted for 34 percent of all the branches run by foreign-funded banks in China by September 2006.

    Meanwhile, their total assets and profits in China took up 55 percent and 58 percent respectively of those of all the foreign-funded banks in the country.

    The new regulations on the administration of foreign-funded banks took effect on Dec. 11, marking the full opening of China's banking sector to foreign competitors.

    Under the regulations, China will treat the foreign-funded banks the same as domestic ones, allowing them to conduct Renminbi business for Chinese citizens in line with its commitments to the World Trade Organization (WTO).

    The Chinese government encourages foreign banks to incorporate locally and set up subsidiaries to minimize risks for Chinese customers.

    China has seen the number of foreign-funded banks grow and their business scope expand since it joined the WTO in 2001.

    Total assets of foreign-funded banks in China totaled 105.1 billion U.S. dollars in September, accounting for 1.9 percent of all banking institutions in the country.