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Global consulting giant Cap Gemini Ernst and Young has moved its China regional headquarters from Hong Kong to Shanghai, state press reported.

The company hopes the move will further help expand business in China with an already quickly growing clientele on the mainland, the Xinhua news agency reported, citing Su Qiming, chief executive officer of the company's China arm.

The company's client portfolio consists of roughly equal numbers of multinationals and local companies, each accounting for half of its business volume on the mainland.

However, local clients are expected to expand to 60 percent of the total by the end of this year, Su said.

In May 2002, the Cap Gemini Group of France and Ernst and Young Consulting Co. of the United States merged to form Cap Gemini Ernst and Young, becoming one of the world's largest consulting and technology firms.

The company has more than 50,000 employees worldwide with annual revenue exceeding seven billion euros (7.91 billion dollars), the report said.

A growing number of multinationals are abandoning the traditional bases of Hong Kong or Singapore for Shanghai.

Last month, US electronics giant Honeywell International said it was moving its Asia-Pacific headquarters to Shanghai from Singapore while United Parcel Service this month said it was moving its China headquarters to Shanghai from Hong Kong.

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