China-Taiwan banking consultations continue

China said talks with Taiwan should produce “good results”.

Shang Fulin, chairman of the China Banking Regulatory Commission, and a 10-member delegation are currently in Taiwan to meet with the island’s Financial Supervisory Commission.

It will be the third in a series of cross-Taiwan Strait banking supervision consultation meetings and is expected to cover easing restrictions on banks in Taiwan and China buying stakes in each other's financial institutions, among others.

Under existing norms, a Chinese bank can own up to 5% of a Taiwanese bank's shares while a Taiwanese bank is restricted to owning no more than 20% of a Chinese partner's shares.

Shang said good results can be expected on the issue of allowing Taiwanese banks to hold bigger stakes in their Chinese partners.

Analysts said that if Taiwanese banks were allowed to own bigger stakes in Chinese banks, it would be a big boon for local banks that want to promote their asset management products in China.