SHANGHAI, Aug. 28 -- FOUR Bank of China outlets in Tianjin yesterday began to process requests from domestic investors to open accounts that will allow them to directly trade shares on the Hong Kong Stock Exchange, China News Service reported.

The State Administration of Foreign Exchange on August 20 announced it would allow individual investors to buy and sell Hong Kong shares through Bank of China accounts in Tianjin.

The four outlets in the north China city received more than 1,000 applications by yesterday afternoon. Investors can begin trading as early as tomorrow after their registration is verified in Hong Kong, the report said.

The bank's other branches across the country can participate after signing agreements with the Tianjin outlets.

The move, viewed as a big step toward opening China's capital-account regime, should help alleviate the country's rising foreign-exchange reserves, experts said, adding that it may take some time before a significant influence occurs.

China's forex reserves topped US$1.33 trillion at the end of June.