The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Taiwan’s door to the mainland slowly opens

As relations with China improve, Taiwanese banks are eyeing opportunities on the mainland as they struggle with a saturated home market. Will cross-strait accords be the trigger for growth that Taiwan’s banks desperately need?

Surrounded by a vocal and excitable entourage in a Taipei office, Charles Lo, chief executive of China business at Chinatrust in Taiwan, is outlining the company’s aspirations for expansion across the strait to the mainland.

"In the long term, I see Greater China becoming one market," says Lo. "This would cover China, Hong Kong, Macau and Taiwan. I have always believed this."

Ambition and idealism aside, any such unified market remains some way off. Before the nations in northeastern Asia can become one (very big) happy family, traditional adversaries China and Taiwan need to get much more friendly.

It is a potentially long and difficult process but there are signs of progress. Deepening economic arrangements such as the Economic Cooperation Framework Agreement and the Memorandum of Understanding are squarely aimed at enhancing the cross-strait relationship. And the timing looks spot on.

Freya Beamish, north-east Asian economist at Lombard Street Research based in Hong Kong
Freya Beamish, north-east Asian economist at Lombard Street Research based in Hong Kong

"In terms of both solvency and liquidity, Taiwanese banks are relatively healthy," says Freya Beamish, north-east Asian economist at Lombard Street Research based in Hong Kong.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree