The Hong Kong Monetary Authority (HKMA) has approved Fubon Financial Holding’s acquisition of International Bank of Asia.
The deal makes Fubon the first Taiwanese financial holding company to acquire a Hong Kong bank and is seen as a prelude to Fubon, and other Taiwan banks, setting up branches in mainland China.
Doing business with China is vital for Taiwan’s banks – there are 60,000 Taiwan companies located there and bilateral trade in 2002 totalled US$37.4 billion – but restrictions imposed by the Taiwan government on banks intending to set up branches on the mainland are forcing the banks to find another route via Hong Kong.
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