China Merchants applies for establishing Taiwan representative office

The Chinese bank seeks to open banking services in Taiwan under Economic Cooperation Framework Agreement.

China Merchants Bank Co., China's sixth-largest lender by assets, has applied to become the third mainland China bank to set up a representative office in Taiwan, the island's Financial Supervisory Commission said Wednesday, in a report in the Wall Street Journal.

China Merchants Bank is looking to follow in the steps of Bank of China Ltd. and Bank of Communications Co., which received approval to set up representative offices from Taiwan's financial regulator late last month.

In June, China and Taiwan signed their first trade pact, called the Economic Cooperation Framework Agreement, which will open services including banking to cross-strait investment and bind the two economies closer together.