Taipei,Oct.11,2012(CENS)--Five domestic financial institutions will set up offices in mainland China or buy into mainland Chinese banks next year,according the projection of the Financial Supervision Commission(FSC)in its budget for 2013.
Fubon Financial Holding,Cathay Financial Holding,and Mega Financial Holding all reportedly plan to buy into mainland Chinese banks.According to the current progress,Fubon Financial Holding and Cathay Financial Holding may realize the goal at an earlier time.
The FSC opened up mainland Chinese banks to buy into Taiwanese financial holding firms and banks in January this year,although it has allowed Taiwanese banks to buy into mainland Chinese banks for many years.Report on domestic financial holding firms and banks buying into mainland Chinese banks has been in circulation constantly,but there has no one formal application up to now.
Insiders pointed out that Fubon Financial Holding and some other domestic financial holding firms have been reportedly scrambling to buy into First Sino Bank in Shanghai.Cathay Financial Holding is reportedly in talk for buying into Wenzhou Bank.Meanwhile,Hua Nan Financial Holding and Mega Financial Holding are actively seeking opportunities to invest in mainland Chinese banks.
On the other hand,there are only a few mainland Chinese banks capable meeting the conditions of the FSC for buying into Taiwanese financial holding firms and banks.ICBC of China is reportedly in talk with Cathay Financial Holding for mutual investments.
Currently,a single mainland Chinese bank can own up to 5%stake in Taiwanese financial holding firms and banks and the total stake held by mainland Chinese banks and QDII(qualified domestic institutional investors)is capped at 10%.Industry insiders said that the low ceilings affect the willingness for mainland Chinese banks to buy into Taiwanese financial holding firms and banks.