CBRC denies rumor of stated-owned banks purchasing shares in Taiwan-funded banks

On October 15, a spokesperson for the China Banking Regulatory Commission (CBRC) denied reports by some media that the CBRC has approved the China Industrial and Commercial Bank of China (ICBC) and China Construction Bank (CCB) to purchase shares in Taiwan-funded banks, saying this is just a rumor.

The Chinese mainland and Taiwan are actively promoting cross-strait financial exchanges, and hope for an early signing of a memorandum of cross-Strait financial supervisory cooperation (MOU).

Industry insiders say that although cross-Strait financial supervisory authorities are working in close contact, the MOU has not yet been signed, and there is no platform for the state-owned banks buying shares in Taiwan banks and making strategic investment.

Chen Chong, chairman of the Taiwan Financial Supervisory Commission (FSC), said the part concerning financial issues in MOU has been completed, but it did not include aspects such as the conditions of market access. Chen expected MOU will be signed before the end of next year at the latest.

Taiwan media reported on October 14 that ICBC and CCB initially plan to purchase shares of private medium-sized banks based in Taiwan. Affected by this news, on October 15, shares of small and medium-sized banks in Taiwan have soared, and the banks section as a whole was up by 1.01%, much higher than the Taiwan Stock Exchange Weighted Stock Price Index.

By People's Daily Online