Taiwan signed three long-anticipated financial memorandums of understanding with China Monday, paving the way for closer cooperation in banking, insurance and securities, the government said.
The memorandums cover information exchange, confidentiality, financial inspection, crisis management and continued contact between the two sides’
regulatory agencies, Taiwan’s Financial Supervisory Commission said.
“Our finance industry needs to go to the mainland,” the commission said in a statement posted on its website. “It can also serve Taiwan businesses there.”
The memorandums will take effect within 60 days, according to the commission, which said its chairman, Sean Chen, signed them at 6:00 pm (1000 GMT).
According to earlier reports, it is expected that the memorandums will eventually make it easier for Taiwanese and Chinese banks to buy each other’s assets.
The agreements are also likely to make it possible for Chinese investors to buy shares on the Taiwanese stock market, the earlier reports said.
The signing of the memorandums is the latest sign of improved relations after the China-friendly politician Ma Ying-jeou became president of Taiwan in May last year.
