Hongkong and Shanghai Banking Corp has received approval from China's banking watchdog to set up branches in Chongqing and Chengdu - the lender's first in western China.

　　The China Banking Regulatory Commission has permitted HSBC to upgrade its offices in Chengdu, capital of Sichuan Province, and Chongqing City to full branch status, an action that expands the bank's network to 12 branches across China's mainland.

　　"In the heart of the western region, Chongqing and Chengdu have enjoyed rapid economic growth thanks to China's 'go-west' campaign," said Dicky Yip, HSBC's chief executive for China business.

　　The two new HSBC branches will offer a full range of foreign-exchange-denominated services to domestic and overseas-invested companies, mainland residents, foreign nationals and residents of Hong Kong, Macau and Taiwan. Preparations are under way to inaugurate the new branches pending further operational approval from the CBRC, HSBC said in a statement.

　　The bank opened its Chengdu representative office in 1996 and its Chongqing office in 1999.

　　Overseas banking giants, including Citigroup, Standard Chartered and HSBC, are vying to expand in the Chinese market, which will be fully opened to them at the end of next year.