Taiwan’s financial sector can expand its business map in China by securing a foothold in the southeastern province of Fujian, part of a proposed coastal economic zone, analysts said yesterday at a cross-strait trade forum.
Andy Chang (張五岳), director of the Institute of China Studies at Tamkang University, said local financial institutions could open branches in Fujian or acquire shares of Chinese lenders there once regulations are announced.
To that end, Chang suggested Taiwanese negotiators seek to persuade their Chinese counterparts to turn the planned economic zone into a test area where Taiwanese financial firms enjoy preferential treatment in a bid to integrate the neighboring economies.
The proposed zone aims to accelerate economic integration with Taiwan as well as promote reunification, Chinese media said.
Chang said Taiwanese banking institutes would probably have difficulty competing with foreign financial service providers in China’s first-grade cities, like Shanghai and Beijing.
Tu Cheng-hua (杜震華), a political science professor at National Taiwan University, agreed. He said financial institutions could consider Fujian as their springboard in tapping the Chinese market.
“Fujian promises a gateway in this regard,” Tu said, adding that China-bound lenders could focus on consumer finance and credit business.
Fubon Financial Holding Co (富邦金控), the nation’s second-biggest financial services provider, has a 19.9 percent stake in Xiamen City Commercial Bank (廈門市商銀), with a view to making further inroads in China once legal barriers are removed.
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