By Rachel Lee
TAIPEI, May 7 (Reuters) - Chinatrust Financial, Taiwan's top credit card issuer, said on Thursday it was open to China banks investing in the firm and planned to form a subsidiary in China, in the latest sign of easing ties across the Taiwan strait.
Chinatrust and other peers in the local banking industry - Asia's No.4 banking market - were pinning their hopes on the massive mainland market as both Taiwan and China have pledged to open their financial markets to each other.
Most forms of investment in China are now closed to Taiwan's financial institutions such as Chinatrust, but cross-strait ties have improved significantly under a year-old China-friendly administration led by President Ma Ying-jeou, leading both sides to pledge to open up many of their financial markets.
'We do not rule out such investments. Many China banks have expressed their interests via investment banks,' chief investment officer Daniel Wu told reporters.
'We will apply to set up branches or a subsidiary in China as soon as next year, if the MOU is signed soon,' Wu said.
Taiwan and China recently signed a financial deal, paving the way for them to sign a memorandum of understanding (MOU) on financial supervision in the near future.
Larger rival Cathay Financial on Wednesday said it planned to invest T$100 billion ($3 billion) in China stocks and real estate when Taiwan permits such investments.
China sees self-ruled, democratic Taiwan as its own, though the island has set some restrictions on investments to avoid over-reliance on the mainland.
On Thursday, shares of Chinatrust surged 7 percent to their daily limit, outpacing the broader TAIEX market's 0.09 percent gain.
($1=T$33.1)
(Writing by Faith Hung, Editing by Jacqueline Wong)
((Reuters Messaging: faith.hung.reuters.com@reuters.net; +886 2 2508-0815)) Keywords: CHINATRUST CHINA/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
TAIPEI, May 7 (Reuters) - Chinatrust Financial, Taiwan's top credit card issuer, said on Thursday it was open to China banks investing in the firm and planned to form a subsidiary in China, in the latest sign of easing ties across the Taiwan strait.
Chinatrust and other peers in the local banking industry - Asia's No.4 banking market - were pinning their hopes on the massive mainland market as both Taiwan and China have pledged to open their financial markets to each other.
Most forms of investment in China are now closed to Taiwan's financial institutions such as Chinatrust, but cross-strait ties have improved significantly under a year-old China-friendly administration led by President Ma Ying-jeou, leading both sides to pledge to open up many of their financial markets.
'We do not rule out such investments. Many China banks have expressed their interests via investment banks,' chief investment officer Daniel Wu told reporters.
'We will apply to set up branches or a subsidiary in China as soon as next year, if the MOU is signed soon,' Wu said.
Taiwan and China recently signed a financial deal, paving the way for them to sign a memorandum of understanding (MOU) on financial supervision in the near future.
Larger rival Cathay Financial on Wednesday said it planned to invest T$100 billion ($3 billion) in China stocks and real estate when Taiwan permits such investments.
China sees self-ruled, democratic Taiwan as its own, though the island has set some restrictions on investments to avoid over-reliance on the mainland.
On Thursday, shares of Chinatrust surged 7 percent to their daily limit, outpacing the broader TAIEX market's 0.09 percent gain.
($1=T$33.1)
(Writing by Faith Hung, Editing by Jacqueline Wong)
((Reuters Messaging: faith.hung.reuters.com@reuters.net; +886 2 2508-0815)) Keywords: CHINATRUST CHINA/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
