Bank of Taiwan to open Shanghai branch as ties improve

Bank of Taiwan announced plans on Saturday to open its first mainland branch in Shanghai, Bloomberg reported. The agreement was another signal of improving ties between the two sides, as Taiwan President Ma Ying-jeou has been seeking to deepen economic co-operation with the PRC. The move comes after Taiwan’s Financial Supervisory Commission said on March 16 that an accord would be enacted to allow investment in financial companies across the Taiwan Strait. Under the accord, domestic banks can invest as much as 15% of net worth in China, while mainland banks can set up representative offices on the island or acquire a maximum 5% stake in Taiwanese counterparts. Automated teller machines of 18 Taiwan banks will accept Chinese Unionpay cards by the end of May in order to accommodate increasing numbers of mainland tourists.