The fifth round of financial talks between Taiwan and China were inconclusive yesterday, though the two sides pledged to deepen financial ties and ease operation rules for their banks.
Taiwanese and Chinese officials made the statements after a closed-door meeting between Financial Supervisory Commission (FSC) Chairman William Tseng (曾銘宗) and his Chinese counterpart, China Banking Regulatory Commission Chairman Shang Fulin (尚福林), in Nantou County.
“The two sides shared the need for further regulatory cooperation and relaxation given increasing exchanges among bilateral financial institutions,” Banking Bureau Director-General Austin Chan (詹庭禎) told a news conference.
Photo: CNA
China agreed to allow Taiwanese banks more investment flexibility when they want to increase their presence in Chinese controlled Fujian Province’s free-trade zone, Chan said.
Taiwanese lenders have lobbied for permits to set up multiple branches in a single Chinese province, a practice that is banned under existing rules.
Chinese Banking Commission international department head Fan Wenzhong (范文仲) said China would give the proposal favorable consideration, but needs more time to study the details.
“We are receptive to proposals that make the operating environment more friendly for Taiwanese and foreign financial institutions,” Fan said.
The two sides agreed to make equity investments by bilateral financial institutions easier, but declined to elaborate.
Bank SinoPac (永豐銀行), the main subsidiary of SinoPac Financial Holdings Co (永豐金控), inked a deal in April 2013 to sell 20 percent of its shares to Industrial and Commercial Bank of China (ICBC, 中國工商銀行) via a private placement.
The deal, of which the realization hinges on the passage of the cross-strait service pact, has remained mired.
It is up to the two banks to decide whether to extend their equity investment agreement and there is nothing cross-strait regulators can do to facilitate the deal, Chan and Fan said.
As for CTBC Financial Holding Co’s (中信金控) bid to set up a brokerage with a Chinese partner, China has yet to work out the details regarding a free-trade zone in China’s Fujian Province, the venue for the joint venture, Fan said.
“We are positive about closer ties between Taiwanese and Chinese financial institutions,” Fan said.
As of Thursday last week, there were 52 Taiwanese financial outlets in China, including two banking subsidiaries, 25 banking branches and 10 sub-branches, FSC data showed, while Chinese banks have set up three branches in Taipei and one representative office.
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