Taiwanese awaits China's nod on bank<\/p>\n
SHANGHAI (AFP): A group of Taiwan business executives has
\nfinalized negotiations to set up a joint venture bank with
\nShanghai's Pudong Development Bank (PDB), a banking source said
\nyesterday.<\/p>\n
"We have been working on the bank for three years. We are
\nwaiting for final approval from the People's Bank of China," said
\nMichael Tsang, who represents the Taiwanese interests in setting
\nup the bank, to be called First Sino Bank.<\/p>\n
"We are likely to get a license very soon from the
\nindications," Tsang said, adding that the joint venture would be
\nlocated in Shanghai's formative new financial center in Pudong
\nNew Area.<\/p>\n
Further details of the Taiwanese investors involved in setting
\nup the bank were not available.<\/p>\n
PDB chairman Zhuang Xiaotian told AFP last month that PDB was
\nnegotiating with Taiwan interests to set up the joint venture
\nbank.<\/p>\n
Tsang said that the Taiwan shareholders would hold majority
\ninterest in the bank which would have a registered capital of
\nUS$100 million of which $50 million would be paid up initially.<\/p>\n
"We want to increase the registered capital to $200 million in
\nthe near future," he said.<\/p>\n
The bank would focus primarily on serving corporate Taiwanese
\nclients and, secondly on overseas Chinese interests, Tsang said.<\/p>\n
Taiwan investors are the biggest foreign investors in Shanghai
\nand the quantum of investment is set to grow following a period
\nof uncertainty last year.<\/p>\n
Investment fell off after China launched a series of missile
\nexercises aimed at Taiwan ahead of presidential elections on the
\nisland, which it regards as a renegade province.<\/p>\n
"Before, Taiwan investors tended to concentrate in Guangdong
\nand Fujian but now they are all over the country. This is why we
\nwant to set up in Shanghai because this will be the growth area,"
\nhe said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/taiwanese-awaits-chinas-nod-on-bank-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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