SHANGHAI. Dec 31: China announced Monday that four foreign banks in Shanghai had been chosen to begin trial operations in Chinese Currency business, reports AEP.

The long-awaited list revealed by Shanghai Vice Mayor Zhao Qizheng comprised the bank of Tokyo-Mitsubishi, the Industrial Bank of Japan. Citibank from the United States and Britain's Hong Kong and Shanghai Banking Corp.

Zhao said the four banks would be allowed to begin Chinese currency operations as soon as they open branches in the Pudong area, a massive development zone where Shanghai is building a new financial district.

Altogether. 10 banks — including the four selected Monday — have applied to relocate

their branches to Pudong in the hope of obtaining the green light for Renminbi Yuan business. However, permission will only come with heavy restrictions.

Earlier this month, central People's Bank of China (PBOC) official said, selected banks would have to bring hard currency equivalent to 50 million yuan (six million dollars) start their yuan business and would only be allowed to take yuan deposits from joint venture enterprises.

The Shanghai PBOC is set to Issue specific rules covering the reserves ratio the selected foreign banks must keep with their local branch, how they should joint the national inter-bank money market and abide by the local rules on money management and accounting.