Taiwan will soon allow insurers to invest in China financial instruments for the first time, the island’s financial regulator said on Tuesday, signalling how warming cross-strait relations are yielding business benefits, the Financial Times reported. The Financial Supervisory Commission said Taiwan plans to allow qualified insurers to invest up to 10% of their overseas investment limit in Chinese stocks and up to 5% of the limit in bonds. Insurers will also be permitted to invest in other financial products, including Treasury bills and exchange-traded funds. "It increases avenues for investment and so will help improve returns on our investments," said Chao Tsai-ling, executive vice-president at Fubon Life Insurance, Taiwan’s second-biggest life insurer.