BEIJING - Foreign banks have said they were looking forward to expanding their China operations following the release of new rules opening up the mainland's banking sector to global competition.

Standard Chartered, HSBC, Hang Seng and the Bank of East Asia all confirmed to AFP they intended to set up locally incorporated ventures in the mainland, as required by the new regulations.

London-based Standard Chartered said it had submitted an application to China's banking regulator to establish a locally incorporated subsidiary bank and another one for a retail yuan business license.

"We are pleased about the announcement as we are actively interested in the opportunity to locally incorporate our business in China," Standard Chartered Bank China chief executive officer Katherine Tsang said in a statement.

The bank's two applications were submitted Thursday morning, about the same time the new rules were formally announced at a government press conference.

The new rules will allow foreign banks to access the local currency retail market and subject them to many of the same regulatory requirements as that of local banks, although there will be some tougher restrictions.

They will take effect on December 11 -- the fifth anniversary of China's entry into the World Trade Organization. As part of its entry, China committed to opening up its banking sector by the end of this year.

HSBC also expressed its enthusiasm for expanding into the mainland market.

"We believe that our local incorporation experience in other countries will enable us to be one of the first to incorporate in China," said Richard Yorke, China CEO of HSBC.

"We believe that local incorporation will enable us to further expand our network and service range, in particular our RMB (yuan) financing ability for the benefit of our customers in the China market."

The Hong Kong-based Hang Seng Bank said in a statement it had decided as early as in September to set up a mainland incorporated subsidiary bank and set up its China business headquarters in Shanghai.

"Hang Seng is fully prepared to submit an application for incorporation... as soon as possible in accordance with the CBRC's (banking regulator's) relevant requirements," bank vice chairman Raymond Or said.

"The bank plans to invest more than one billion Hong Kong dollars (128 million US dollars) to expand its mainland network and service capabilities, including its number of outlets to 30 from 15 by the end of 2007."

Bank of East Asia also confirmed that they planned to set up locally incorporated banks in China, most likely also in Shanghai.

The China Daily said Friday more than 10 foreign lenders had expressed an interest in transfering their operating branches into locally registered corporations.

"The total assets of those banks... account for 60 percent of the combined assets of foreign lenders in China," the China Daily quoted Xu Feng, a director of the China Banking Regulatory Commission, as saying.

Total local and foreign currency assets of the foreign-funded banks amount to 105.1 billion dollars, accounting for 1.9 percent of the total banking assets in China, according to government figures released on Thursday.