Westpac opens Shanghai branch

Westpac, one of the biggest banks in Australia, has opened a branch in China's Shanghai, the nation's economic hub, with the aim of expanding its Asian business.

The new branch, located in the 88-storey Jin Mao Tower in Shanghai's Pudong district, officially started operation on Jan. 2, 2008. However, Westpac can only start with foreign currency business presently in accordance with requirements by China Banking Regulatory Commission. It will be able to conduct local currency operation 3 years later.

The setting up of the branch aims to offer full range financial support to Australian exporters, which covers services of working capital, letters of credit and all forms of trade finance, according to Westpac's general manager in Asia, Jogan Rasanayakam.

It is Westpac's second branch in China, following one in Hong Kong and a representative office in Beijing, forming a triangle for the Australian lender.

Compared with Westpac's expansion strategy that focuses on business growth, some of its competitors who are also from Australia have opted for a stake in local Chinese banks.