With two foreign banks setting up new branches in Chengdu in May, the capital of Sichuan province has made another step towards its goal to be the financial hub of western China.

By the end of July, [Offshore Company Incorporation]the city had 16 foreign banks including Standard Chartered, Citibank and JP Morgan Chase. The city's local corporate financial institutions are also growing rapidly with a variety of products hitting the market.

According to data from the municipal government, the city generated 484.3 billion yuan ($79.1 billion) in GDP in the first half of 2014, with the financial sector generating 10.3 percent of the total. Gross profits in the financial sector reached 49.8 billion yuan, up 13.8 percent.

The Chengdu city government released a plan in May to develop a service-centered city with the objective of becoming "the most robust and innovative financial hub". By 2015, profits in the financial sector will account for 20 percent of the service sector, said the report.

In May, ANZ Bank and Hang Seng Bank opened branches in the city.

Michael Smith, CEO of ANZ Bank, told Xinhuanews that Chengdu plays a significant role in the economic growth of western China, a region ANZ has targeted as a key market.

Xu Bin, director of Hang Seng Bank's Chengdu branch, told People's Daily in July that the bank has set up operations in many Chinese cities, but Chengdu impressed him the most with so many big real estate companies from Hong Kong.

"Almost all of real estate big names are here, and also many HK companies. We feel we have to come here too," said Xu.

Chengdu has formulated a range of policy measures that add appeal for foreign financial institutions including cross-border renminbi settlement and mobile e-commerce services.

The city government also has policy support for foreign financial institutions that are developing innovative new services like e-commerce. The city now has the most foreign financial institutions of any central or western city, said experts.

Its 16 foreign banks have total assets about 34 billion yuan, a small number compared with the city's total bank assets of some 5 trillion yuan. Yet an official from the city's [Hong Kong Company Registration Guide]financial administration office said the foreign institutions have a substantial impact on Chengdu's economy.

The official said the banks are from different regions and countries and specialize in various businesses that can support local businesses in a more comprehensive way. With deep experience and good traditions, the foreign financial institutions also trigger reforms at local banks in the city, said the official.