Taiwanese awaits China's nod on bank

Taiwanese awaits China's nod on bank

SHANGHAI (AFP): A group of Taiwan business executives has
finalized negotiations to set up a joint venture bank with
Shanghai's Pudong Development Bank (PDB), a banking source said
yesterday.

"We have been working on the bank for three years. We are
waiting for final approval from the People's Bank of China," said
Michael Tsang, who represents the Taiwanese interests in setting
up the bank, to be called First Sino Bank.

"We are likely to get a license very soon from the
indications," Tsang said, adding that the joint venture would be
located in Shanghai's formative new financial center in Pudong
New Area.

Further details of the Taiwanese investors involved in setting
up the bank were not available.

PDB chairman Zhuang Xiaotian told AFP last month that PDB was
negotiating with Taiwan interests to set up the joint venture
bank.

Tsang said that the Taiwan shareholders would hold majority
interest in the bank which would have a registered capital of
US$100 million of which $50 million would be paid up initially.

"We want to increase the registered capital to $200 million in
the near future," he said.

The bank would focus primarily on serving corporate Taiwanese
clients and, secondly on overseas Chinese interests, Tsang said.

Taiwan investors are the biggest foreign investors in Shanghai
and the quantum of investment is set to grow following a period
of uncertainty last year.

Investment fell off after China launched a series of missile
exercises aimed at Taiwan ahead of presidential elections on the
island, which it regards as a renegade province.

"Before, Taiwan investors tended to concentrate in Guangdong
and Fujian but now they are all over the country. This is why we
want to set up in Shanghai because this will be the growth area,"
he said.