Taiwan to ease acquisition rules for Chinese banks

Taiwan has said it will ease rules on acquisitions by mainland Chinese firms, in a move seen as a major boost in cross-strait relations.

Taiwan will allow Chinese banks to buy as much as 15% stakes in unlisted local banks, while investments in a financial holding’s unit will be lifted to 20%, the China Banking Regulatory Commission and the Financial Supervisory Commission said in a joint briefing. The rules will come into effect over the next few months.

Taiwanese banks will eventually be granted permission to open a second unit in the same city in the mainland with the CBRC vowing to speed up the review process, a CBRC official told Reuters.

Taipei has previously voiced concerns over Chinese influence, stalling efforts to bolster ties between the two sides’ financial sectors, Reuters reports.

China still regards the self-ruled island as its own territory under the One China policy. Beijing stressed it has the right to use military force to reclaim the island.

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