China’s top banking regulator expects a meeting with his Taiwanese counterpart this week to produce good results for both sides of the Taiwan Strait and good memories for himself.
Shang Fulin (尚福林), chairman of the China Banking Regulatory Commission, arrived in Taiwan yesterday at the head of 10-member delegation for a meeting today with Financial Supervisory Commission Chairman Chen Yuh-chang (陳裕璋) and other officials.
It will be the third in a series of cross-strait banking supervision consultation meetings and is expected to cover such issues as the easing of restrictions on banks in Taiwan and China buying stakes in each other’s financial institutions.
Currently, a Chinese bank can own up to 5 percent of a Taiwanese bank’s shares, while a Taiwanese bank is restricted to owning no more than 20 percent of a Chinese partner’s shares.
Asked upon his arrival at Taiwan Taoyuan International Airport if China would allow Taiwanese banks to hold bigger stakes in their Chinese partners, Shang said “good results can be expected” at today’s meeting on “issues of concern to the market.”
Chen Ting-ju (陳亭如), an assistant manager at Bank SinoPac (永豐銀行), said that if Taiwanese banks were allowed to own bigger stakes in Chinese banks, it would be a “big boon” for local banks that want to promote their asset management products in China.
Hwang Dar-yeh (黃達業), a finance professor at National Taiwan University, said allowing Chinese banks to own more shares of their Taiwanese partners could also benefit domestic banks.
Such a move would enable Taiwanese banks to expand their services and increase the chances that they would also be allowed to buy into Chinese banks.
Taiwanese banks have set up 10 branches and six representative offices in China, while Chinese banks have set up two branches and two representative offices in Taiwan.
Shang is scheduled to leave Taiwan tomorrow.
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