Beijing, Taipei close to banking deal

Banking regulators in Beijing and Taipei have agreed that Taiwan’s Fubon Bank can take a 20% stake in Xiamen Commercial Bank, the Financial Times reported. The investment would help remove one of the largest remaining barriers to cross-strait economic ties by allowing Taiwan banks to invest in mainland banks via their subsidiaries in Hong Kong. People close to the matter said the Fubon deal could serve as a case study for future tie-ups between Taiwan and mainland banks. An official in Taipei said both sides had agreed informally to the deal and that a formal letter has been sent to Beijing. The head of Taiwan’s financial regulator said he hopes the deal will come through in March or April.