UPDATE 1-Alibaba's Tmall to set up centre in Shanghai

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BEIJING, April 26 (Reuters) - Alibaba's e-commerce site Tmall plans to set up a new centre in Shanghai for some of its divisions, as it faces increasing competition from rivals expanding their operations in the city.

Alibaba said on Monday the relocation will help Tmall to better serve international companies selling goods on the site.

The re-location will affect Tmall's beauty division and outdoor sports division, according to the company, with other units to follow.

Alibaba added that it will set up over 20 additional local operations teams across various cities in China this year.

Shanghai is home to the headquarters of Pinduoduo, one of Alibaba's chief e-commerce rivals.

It is also the headquarters for the e-commerce division of Beijing-based social media giant ByteDance, and the female-centric shopping site Red, also known as Xiaohongshu.

The re-location also comes after Alibaba was hit with a record $2.75 billion fine from China's anti-monopoly regulator, for engaging in anti-competitive behavior. (Reporting by Yilei Sun and and Sophie Yu in Beijing; Zoey Zhang and Josh Horwitz in Shanghai; editing by Louise Heavens & Simon Cameron-Moore)