The Shanghai branch of the People's Bank of China reported that foreign banks invested US$240m in Shanghai during the first six months of this year, according to Reuters. "Foreign banks in Shanghai have an almost universally optimistic view of their China operations and of China's prospects for maintaining quick economic growth," said the bank.
China has been gradually opening its protected banking sector to foreign involvement following its accession to the WTO. Foreign banks have been keen to cash in and now have US$20bn in net assets in Shanghai, about half the total they have in China.