DPP outraged over local banks referring to Taiwan as being 'within the island'
By Katherine Wei, The China Post
December 11, 2013, 12:30 am TWN
TAIPEI, Taiwan -- The main opposition party yesterday lashed out at the government-owned banks that had celebrated China Construction Bank's launch of Formosa bonds by referring to Taiwan as “within the island.”
The United Daily News had printed a celebrative message on Monday, congratulating the successful launch of by far the biggest number of Formosa bonds in Taiwan and listing the banks that celebrated the bonds. Among the listed were government-owned banks including the Bank of Taiwan and the Land Bank of Taiwan.
According to the Democratic Progressive Party (DPP), the act of government-owned banks publishing an advertisement and referring to Taiwan as “dao-nei (島內),” a mainland China moniker for Taiwan meaning “within the island,” is against the Act Governing Relations between the People of the Taiwan Area and the Mainland Area. “Not only is this against the act, this is also an attempt in assisting China to achieve its political goals and propaganda,” said DPP caucus whip Gao Jyh-peng (高志鵬).
“The government-owned banks should be clear on whether they had sponsored the advertisement, and the government on the legitimacy of the advertising; is this against the act? Does this call for punishment of any kind?” asked Gao.
The Bank of Taiwan stated yesterday that it is neither the main nor a supporting administrator for the launch of the China Construction Bank's Formosa bonds, also stressing that it is unclear why the Bank of Taiwan is included in the advertisement.
Expansion of Formosa Bonds in Taiwan
The Formosa bonds of four major Chinese state-owned banks are set to begin trading on the GreTai Securities Market (GTSM) on Tuesday, massively expanding the Formosa bond market scale in 2013 by 1.72 times to 10.6 billion.
The mentioned four banks are the Hong Kong branches of China Construction Bank Co. (CCB), Bank of China (BOC), Bank of Communications Co. (BOCOM) and Agricultural Bank of China (ABC), whose major shareholder is the mainland China Ministry of Finance. CCB will be issuing a total of NT$2 billion worth of Formosa bonds.
Taiwanese banks, particularly those with large outstanding renminbi deposits, such as Mega International Commercial Bank (兆豐銀) and CTBC Bank (中信銀), will likely benefit from the expansion of Formosa bonds issuances, according to a Moody's Investors Service report.