Two Gov't-linked Taiwanese Banks Approved to Run Second Branches in China

Two government-linked banks in Taiwan—Taiwan Cooperative Bank and Land Bank of Taiwan—were recently approved by mainland China's financial authority to open second branches in China.

Both banks plan to open their second branches in Tianjin, a key harbor city in China's northern Bohai Bay. Taiwan Cooperative is slated to officially open the Tianjin branch on July 24 and Land Bank will inaugurate its new branch on August 4. The two banks currently have branches in Shanghai and Suzhou, Jiangsu Province, respectively.

Initially the two banks will aim at offering financial services to the reportedly more than 2,000 Taiwanese enterprises in Tianjin region, including heavyweights like Foxconn Technology Group, Ting Hsin International Group, DaChan Greatwall Group, Teco Group, Semiconductor Manufacturing International Corp., and Din Tai Fung Dumpling House.

Ten Taiwanese banks currently have branches in China. Six established their first mainland branches at the end of 2010 and early 2011, including First Bank, Cathay United Bank, Chang Hwa Bank, Hua Nan Bank, Taiwan Cooperative and Land Bank.

Seeing the bright outlook for China's financial market, the said six banks are eager to open second branches in the mainland and have found suitable sites.

The first mainland branches of First and Cathay are located in Shanghai. First will open its second branch in Chengdu of Sichuan Province and Cathay will set up its second branch in Qingdao of Shandong Province. Chang Hwa, whose first branch is in Kunshan of Jiangsu Province, reportedly plans to open its second branch in Dongguan of Guangdong Province. Hua Nan, which currently operates in Shenzhen of Guangdong, is likely to open its second branch in Shanghai.

First, Chang Hwa and Hua Nan are still waiting for government approval to open their new branches. However, the three banks are expected to receive a green light no later than the end of this month. (JL)