Taiwan will strive for preferential status for its banks in upcoming trade talks with the mainland, a report said yesterday, after Premier Wen Jiabao pledged to cement cross-Straits ties.

The government hopes such a move would let any individual Taiwanese bank buy up to 30 percent of any mainland lender, as opposed to the current 20 percent ceiling Beijing imposes on overseas investors, the Commercial Times said.

It said Taiwan also hopes its banks will be allowed to open branches as soon as they enter the mainland market, instead of facing the prerequisite that overseas banks have to first open representative offices for two years.

The island's Financial Supervisory Commission regulator was not immediately available for comment on the report.

During a press conference at the end of the annual session of the National People's Congress in Beijing Sunday, Wen hailed the fast-warming ties with Taiwan and guaranteed Beijing would "grant benefits" to Taipei in the coming trade talks.

Taiwanese officials have said they aim to hold the second round of formal trade talks with the mainland this month to exchange "early harvest" lists of industries that will be entitled to a preferential status in tariffs and investments.

Taiwan and the mainland held their first round of formal talks in January in Beijing to decide on procedural issues.

China Daily/AFP

(HK Edition 03/16/2010 page4)