By the end of April, a total of 20 foreign banks had filed to set up branches in the FTZ. Among them, 10 banks, including Citibank and HSBC Holdings Plc, have already opened for business. In the meantime, FTZ branches of 10 domestic banks have also been approved.

The change in attitude came as more detailed financial reforms were presented. Last week, the China Banking Regulatory Commission and People's Bank of China, the central bank, each announced supportive measures to liberalize financial operations in the FTZ, such as relaxing barriers to cross-border capital flow and removing the 75 percent loan-to-deposit ratio to boost lending ability.

"Financial reform in the Shanghai FTZ advances steadily," said Tu Guangshao, vice-mayor of Shanghai. "And there are more innovations in the pipeline."

Financial liberalization and cooperation in the FTZ will also be the focus of the upcoming Conference on Interaction and Confidence-Building Measures in Asia, which will be begin in Shanghai on Wednesday Local media also reported that leaders from the participating countries will visit the FTZ administration office and customs office on Tuesday.

Shanghai FTZ 'negative list' may be cut by 40% to boost more interest	Shanghai FTZ sees more liberalization