Taiwan formalizes mainland financial investment rules

The Financial Supervisory Commission on Taiwan formally announced guidelines for investment relationships between local and mainland banks, Reuters reported. According to the new rules, single mainland banks can take up to a 5% stake in a Taiwan bank, and Taiwan banks can invest up to 15% of their book value in mainland banks. The new rules follow the conclusion of a historic pact between Taiwan and the mainland to allow increased bilateral access for the financial services sector. Some Taiwan politicians remain concerned over dominance by mainland firms on the island, but the measures are expected to improve acquisition opportunities across the strait.