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Ta Chong allowed to set up HK unit

The Financial Supervisory Commission (FSC) yesterday approved Taipei-based Ta Chong Bank (大眾銀行) to set up a financial services subsidiary in Hong Kong.

"The bank's move is aimed at extending its services to Hong Kong, where Taiwanese companies are financially active," commission spokesman Lin Chung-cheng (林忠正) said yesterday.

The bank may develop the affiliate into an overseas branch in the future, Lin said.

In Hong Kong, financial services firms can operate almost like banks and may engage in lending, foreign exchange, acceptance of bills or drafts, and securities trading, but cannot accept savings.

A group of Taiwanese financial institutions have established subsidiaries in Hong Kong, including Mega Financial Holding Co's (兆豐金控) Barits Securities (Hong Kong) Ltd and Fubon Financial Holding Co's (富邦金控) Fubon Bank (Hong Kong) Ltd.

The FSC also approved Fubon Bank Hong Kong's application to set up a representative office in China, Lin said, adding that the application had been sent to the Mainland Affairs Council for final approval.

Fubon Financial said last month that it was considering investing in Chinese banks through its Hong Kong banking division.

Lin did not comment on whether the FSC would approve Fubon's application to invest in Chinese banks.
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