Cross-Straits financial supervision soon

The Chinese mainland and Taiwan are expected to ink a memorandum of understanding (MoU) on cross-Straits financial supervision in the first half of next year, which will allow the island's lenders and securities firms to tap the mainland's financial market.

"The MoU will cover regulatory cooperation on the banking and securities sectors," Susan Chang, chairperson of Taiwan Financial Holdings, said in a symposium attended by leading financial institutions and officials from both sides of the strait.

The MoU is expected to allow financial regulators from the mainland and the province to set up offices in each other's turf. Once the offices are in place, banks and securities firms from the island will be allowed to set up sub-branches and subsidiaries on the mainland. In addition, they will also be able to buy stakes in local financial institutions.