FSC gives guidelines for China investment

The statement by Kui Hsien-nung, head of the banking bureau under FSC, was made during a presentation on guidelines for local financial firms seeking to invest in China.

Starting next Monday, Taiwan financial firms may apply for investments in China. It is expected Taiwan's banking, securities and insurance firms may set up branches in China or invest in Chinese financial companies in the first half at the earliest.

“Investment in China will be conducted in a cautious, reciprocal, step-by-step and effective manner,” Kui said. “We hope to create a win-win situation.”

Thirteen of Taiwan's financial holding companies are eligible to apply, FSC announced earlier this week. Yet, yesterday, representatives from Taiwan's 15 financial holding firms showed up.

Of them, four sent their presidents. They were Lin Ke-hsiao, Hsu Kuang-hsi, Tsai Yu-tsai and Huang Nan-chou, presidents of Taishin Financial Holding, Mega Financial Holding, SinoPac Financial Holding, and E.Sun Financial Holding, respectively.

Separately, Fubon Financial Holding yesterday expressed its dissatisfaction with the guidelines, the United Evening News reported.

Under the guidelines, a Taiwan financial company may invest in China either through its parent corporation or through its overseas subsidiary.

Fubon currently has a stake in Xiamen Bank, based in the Fujian Province city on the other side of the strait, through its Hong Kong subsidiary. This means Fubon Financial can no longer make other investments in China.

Fubon thinks the rules are unfair, United Evening News reported.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email