China's financial authorities announced on January 27 that they will allow foreign financial institutions to do business in all of the nation's large and medium-sized cities.

Dai Xianglong, Governor of the People's Bank of China, told a press conference on January 27 that the geographical restrictions on the operation of foreign financial institutions will be lifted.

Presently China has allowed foreign financial institutions to set up branches in 23 Chinese cities as well as the subtropical island province Hainan. Now that permission will be extended to all major cities throughout the country.

The central bank governor said that China has never stopped opening its financial sector to the outside world. Since the breakout of the southeast Asian financial crisis in mid-1997, China has given the go-ahead for four foreign insurance companies and some 10 foreign banks to establish business branches in China.