Taiwanese banks to invest in China
by Richard Kilner
Story link: Taiwanese banks to invest in China
With little over a week to go to elections, the Taiwanese government has attempted to bolster its prospects by announcing that its banks will be permitted to invest in Chinese lenders.
Taiwan’s own lending market is extremely competitive, and China’s vast market is seen as an excellent opportunity for expansion for Taiwanese firms.
The economy has been at the heart of electioneering, with Taiwan’s situation become someone stilted of late.
The announcement is an attempt to boost both the economic situation and the government’s political chances.
Whilst stock exchanges have been suffering globally recently, the Taiwanese subindex has risen by 1.5% on the news.
Further, the subindex has soared by 14% during the course of the year.
Although the political relationship between China and Taiwan is extremely strained, the mainland remains the island’s foremost trading partner and the primary target for its firms seeking to expand.
In order to prevent the island reaching the status of dependency upon its mainland counterpart, a range of limits and restrictions have been enforced by the island’s government.
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