l Top financial regulators from both China and Taiwan met in Taipei in late April to explore ways to enhance cross-Strait financial cooperation.
l It was the first high-level discussion since the two sides formally inked a MOU in November 2009 on cross-Strait financial cooperation in banking, securities, futures, and insurance services.
l However, economic negotiators walked away empty-handed from the one-day meeting since both sides could not agree on the principle of reciprocity in market access.
l Taiwan’s banking community has long believed that their belated entry into China’s domestic market had placed them at a disadvantage with other foreign banks. An earlier permission for Taiwan banks to provide Renminbi (RMB) transactions will, therefore, enable them to become more competitive.
l Moreover, some local banks had hoped that both sides could reach an agreement on allowing financial institutions from China and Taiwan to take a greater financial stake—up from the current 20% to at least 40%—in the other. In the end, both sides also came away without an agreement since differences in market size made it impossible.
Interested in subscribing ETRC reports and services?
Please contact us at: email@example.com