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Cathay United Bank aims to duplicate Taiwan success in China

Cathay United Bank aims to duplicate Taiwan success in China

Shanghai, July 25 (CNA) Cathay United Bank on Friday became the first Taiwanese bank to enter in Shanghai's free trade zone, where it pledged to duplicate the success it has seen in Taiwan. Cathay United Bank, which was rated best in Taiwan in trade financing and cash management by Trade Finance and AsiaMoney magazines, "is a Taiwanese bank, its target customers are international," said Chen Tsu-pei, president of parent company Cathay Financial Holding Co. The bank in the zone is a sub-branch of Cathay United's main Shanghai branch, which started operations in December 2010, and will have the same scope of business operations as a full branch. Because the sub-branch is located in the free trade zone, however, it will not face any limits on lending to finance cross-border trade activity conducted inside the zone and will be allowed to freely exchange Chinese yuan and foreign currencies. China opened the China (Shanghai) Free-Trade Zone in September 2013 as a model for future market opening reforms. There were originally 190 sectors with restrictions for foreign investors, but that was reduced to 139 on July 1, when barriers on investment in financial services and real estate, among others, were reduced. Yeh Hui-Te, chairman of the Shanghai Taiwanese Businessmen Association, told reporters that he expects more Taiwanese banks to set up branches in the zone, as more Taiwanese businesses are heading there. In addition to Cathay United's sub-branch opened Friday, it established another sub-branch in Shanghai's Minhang district in March of this year. The bank has also received a green light from Chinese authorities to set up a branch in Qingdao in Shandong province, and it has obtained approval from Taiwan's Financial Supervisory Commission to open a subsidiary in Shanghai to further boost its visibility in the Chinese city. Outside China, Cathay United Bank has branches and representatives offices in several countries, including the United States, Hong Kong, Singapore, Malaysia, Vietnam, and Thailand. The bank is also preparing to open outlets in Myanmar and Laos. (By Eva Feng and James Lee)


Updated : 2021-03-05 15:56 GMT+08:00