Taiwan and mainland China ink financial memorandums of understanding

The Financial Supervisory Commission (FSC) announced November 16 that it had signed three memorandums of understanding (MOUs) with mainland China. These MOUs will allow for closer cooperation on supervision of the banking, insurance, and securities and futures sectors. FSC Chairman Sean Chen signed the agreements with the heads of the China Banking Regulatory Commission, the China Insurance Regulatory Commission and the China Securities Regulatory Commission, transferring the texts via document exchange. The MOUs will take effect 60 days from their signing date or prior to this if both sides have completed relevant preparations. In line with standard administrative procedure, the FSC will submit the pacts to the Executive Yuan.

Speaking to concerns on the part of domestic financial organizations about establishing branches in mainland China, the FSC disclosed that domestic firms will be eligible to submit applications to set up branches as soon as the MOUs become effective. The agreements will enable the commission to conduct effective supervision of mainland-based branches of domestic financial institutions.

Chairman Chen also pointed out that domestic banks currently running representative offices in the mainland will be able to apply to convert them into branches. During talks on an economic cooperation framework agreement, Taiwan will also negotiate for the most favorable market access terms for financial institutions to operate in mainland China. Another effect of the MOUs will be to permit mainland China’s qualified domestic institutional investors (QDII) to invest in Taiwan’s stock markets. This will be a change from the present situation where they may invest only in government and corporate bonds. Statistics show that the QDII currently have NT$370 billion (US$11.46 billion) in assets. Investment of 10 percent of this amount will bring NT$37 billion (US$1.15 billion) to Taiwan’s stock markets.

Press Release, Government Information Office of Taiwan, 26. November 2009

Die Presseabteilung der Taipeh Vertretung mit Sitz in Berlin bietet folgende Dienstleistungen an: Erläuterung der Politik und der Entwicklung der Republik China (Taiwan), Verbreitung von Stellungnahmen und Pressemitteilungen von taiwanischer Seite sowie Beantwortung von Fragen über das Land;
Angebot von Informationsmaterial über Taiwan in deutscher, englischer, und chinesischer Sprache (Broschüren, Filme, Videos, DVDs, Diafilme, CDs);
Anlaufstelle für deutsche Medienvertreter, Angebot von Informationsreisen nach Taiwan für deutsche Journalisten;
Organisation von Veranstaltungen mit dem Ziel, Kontakte zwischen Deutschland und Taiwan zu vertiefen (Vorträge, Seminare, Ausstellungen, Filmfestivals etc.);
Sonstige Öffentlichkeitsarbeit

Presseabteilung Taipeh Vertretung
Markgrafenstr. 35, 10117 Berlin

This release was published on openPR.