(Yicai Global) June 3 -- The Shanghai arms of foreign banks have settled more cross-border yuan payments than their local peers in the first four months of this year for the first time ever amid the widening demand in the increasingly accessible market.

Five overseas lenders ranked in the top 10 of total cross-border yuan settlement volume between January and April, the Shanghai arm of the People's Bank of China wrote in a document yesterday.

The five banks' market share was 47 percent while that of the five remaining domestic ones in the top 10 was 41 percent.

In the top 10 of current and direct investment settlement, seven highest-ranking positions were held by foreign lenders. These seven were helping investors exchange more Chinese renminbi than foreign currencies.

The reasons behind the rising international business in Shanghai are diverse. For one, the open policy treats foreign and domestic players equally, according to the regulator.

Moreover, the eastern city's good business environment is attracting an increasingly big number of overseas companies to come and expand their business in the mainland. International lenders have the advantage of wide networks to serve multinational corporations, said the PBOC.

Some of the clients may be Chinese. Many international commodity importers and exporters, as well as manufacturers, have become key clients of foreign banks, and they tend to prefer settling their transactions in renminbi to avoid foreign exchange risks, the statement added.

Shanghai was ranked No. 3 in British think tank Z/Yen's latest index of global financial centers but in terms of fintech prowess, it was No. 2.

Editor: Emmi Laine, Xiao Yi