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Chang Hwa Bank plans to open sub-branch in China by end of June

Chang Hwa Bank plans to open sub-branch in China by end of June

Taipei, Dec. 30 (CNA) Chang Hwa Commercial Bank, one of Taiwan's leading lenders, said Friday it plans to open a sub-branch in Kunshan by the end of June 2012 to complement the services of its existing branch in the Chinese city. Taiwan's Financial Supervisory Commission approved the bank's establishment of the sub-branch in Huaqiao, a district within Kunshan. The new outlet must also win approval from financial regulators in China before it can be opened. According to Chinese regulations, banks are allowed to open a sub-branch in the same city where the lender has operated a branch for at least one year. The sub-branch is required to have the same business scope as the bank's main branch. Chang Hwa Bank, which has run a branch in Kunshan since December 2010, hopes to broaden its reach in the Jiangsu province city, where many Taiwanese investors have formed manufacturing clusters. The bank said the new outlet will be located in an economic development zone in Huaqiao, which aims to modernize industries in the province. Because China plans to build a transportation network linking Huaqiao and Shanghai, the bank said, the sub-branch is expected to extend its services to Shanghai and even to Suzhou and other neighboring cities. Meanwhile, the bank will soon submit an application with Chinese regulators to conduct Chinese yuan business, such as yuan-denominated lending, at its profitable Kunshan branch. Should the application be approved, the Huaqiao sub-branch will also be able offer yuan-denominated services to Taiwanese investors there. Meanwhile, Chang Hwa Bank said it plans to open more branches in other Chinese cities to provide services to Taiwanese firms. It also intends to integrate its Hong Kong and Singapore operations and its offshore banking unit to set up a source of funding in the greater China area. So far, a total of six Taiwanese banks have set up branches in China. The six are Chang Hwa Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Taiwan Cooperative Bank and Cathay United Bank. Chinatrust Commercial Bank, E. Sun Commercial Bank, Mega International Commercial Bank and Bank of Taiwan are preparing to open Chinese branches after getting regulatory approval from authorities on both sides of the Taiwan Strait. (By Tien Yu-pin and Frances Huang)


Updated : 2021-06-15 12:44 GMT+08:00