In a surprise move, Taiwan eased its regulations in allowing Chinese banks to purchase bigger stakes in its local Taiwanese banks. There are even new regulations to permit Chinese companies to invest in the island-nation's financial markets.
This was announced by Taiwan's financial regulator and this marks a major development between the ties of the two neighboring countries, namely the China Banking Regulatory Commission and the Financial Supervisory Commission.
Under the new regulations, Taiwan would allow mainland China banks to invest as much 15% of unlisted local banks and holdings companies. This shareholding would be allowed to be reinvested and increased 20% and would become effective within sixty (60) days.
For its part, the CBRC would speed up its review process allowing Taiwan banks to open a branch in the same city in the mainland. According to a CBRC official, "This is a big breakthrough. We'll see Chinese banks applying for buying a stake in Taiwan banks in the future."
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