2 Tai­wan banks open branches in Shang­hai

The Pak Banker - - Company & Boss News -

SHANG­HAI: First Com­mer­cial Bank, which is par­tially govern­ment con­trolled, opened a branch in Shang­hai Thurs­day, be­com­ing one of the first two Tai­wan banks to do so.

The First Com­mer­cial Bank branch, lo­cated in the Changn­ing District in Shang­hai's Puxi Re­gion, is poised to take ad­van­tage of a boom in China's do­mes­tic con­sumer mar­ket, said Chou Pochiao, ex­ec­u­tive vice pres­i­dent of the bank.

The branch ini­tially aims to serve Tai­wanese busi­ness­peo­ple in China who re­quire funds in for­eign cur­ren­cies, said Chou, who trav­eled to Shang­hai from Taipei for the grand open­ing.

The Puxi branch will start with this ser­vice and af­ter one year, it is ex­pected to show a profit and thus be­come el­i­gi­ble to ex­pand to Chi­nese yuan busi­ness ser­vices, ac­cord­ing Lu Hsin-chih, who has been ap­pointed man­ager of the branch.

Un­der Eco­nomic Co­op­er­a­tion Frame­work Agree­ment (ECFA) that was signed be­tween Tai­wan and China in June, Tai­wanese banks will be al­lowed to con­duct Chi­nese yuan busi­ness in the sec­ond year if they make a profit in the first year of op­er­a­tion. First Com­mer­cial Bank will soon be­gin plan­ning for branches in other ar­eas of China, in­clud­ing the cen­tral and western parts of the coun­try, Lu added. Mean­while, also on Thurs­day, an­other Tai­wan in­sti­tu­tion, Cathay United Bank, opened a branch in Shang­hai's up­scale Lu­ji­azui fi­nan­cial zone in the Pudong Re­gion.

Cathay United Bank Vice Pres­i­dent Lee Wei-cheng said at the open­ing cer­e­mony that the bank will seek to es­tab­lish a sec­ond branch in China soon, prob­a­bly in the Haixi Area, the Bo­hai re­gion or in Sichuan Prov­ince. -PB News


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