Hang Seng invests in Taiwan Strait Economic Zone
March 16, 2012 | BY
clpstaff &clp articlesPreferential policies for cross-strait investment are benefiting Taiwanese entrepreneurs. While some are still concerned about risks such as exit restrictions and the dispute resolution mechanism, foreign financial institutions are already benefiting from the growing business.
According to Xinhua, Hang Seng Bank opened its second branch this week in Xiamen, in eastern China's Fujian province. The province is home to the Western Taiwan Strait Economic Zone.
Investors from Taiwan enjoy preferential policies in the economic zone since the State Council issued Several Opinions on Supporting the Accelerated Establishment of the Taiwan Straits West Coast Economic Zone by Fujian Province (国务院关于支持福建省加快建设海峡西岸经济区的若干意见). These include a favorable approval process compared with investments from Wholly Owned Foreign Enterprises and in the shipping and aviation sector, under the cross-strait three linkages scheme.
Banks with a presence in the Zone are likely to see a growth in consumer banking, credit card and corporate financing, said Hao-Ray Hu of Baker & McKenzie. Many Taiwan businesses set up trading companies in Hong Kong as an intermediate vehicle, which is an advantage for Hong Kong-based banks in China.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now