Taiwan Cooperative Bank given Chinese green light

Taiwan Cooperative Bank (合作金庫) said it will open an office in China, making it the first lender wholly owned by the government to receive such permission from China's central bank.

Taiwan Cooperative yesterday received approval from the People's Bank of China (人民銀行) to open an office in Beijing, and expects to do so by the end of the year, the bank said in a faxed statement.

The approval underlines the increasing links being built with China. Taiwanese investment in China in July rose 54 percent from a year earlier to US$407.4 million, according to the Investment Commission, under the Ministry of Economic Affairs.

Hua Nan Commercial Bank (華南銀行), a unit of state-controlled Hua Nan Financial Holdings Co (華南金控), was also cleared to set up an office in the southern city of Shenzhen, a local Chinese-language newspaper reported earlier, citing no one.

Hua Nan's Executive Vice President Ed Liu wasn't immediately available to comment. People's Bank spokesman Wei Gejun declined to comment.

Representative offices are allowed to gather information, liaise with Chinese and Taiwan businesses and officials and conduct market research.

Though they can't lend money or take deposits, such offices are a key step toward opening full branches in the nation of 1.3 billion people.

Chang Hwa Commercial Bank (彰化銀行) and United World Chinese Commercial Bank (世華銀行) in May became the first two Taiwanese lenders to set up representative offices in China. Chinatrust Commercial Bank (中國信託銀行), International Commercial Bank of China (中國商銀), First Commercial Bank (第一銀行) and Land Bank of Taiwan (土地銀行) are still waiting for approvals from China.