Want China Times
Editorial
Date: 2015-06-14

Despite rapid progress in cooperation between the financial sectors across the Taiwan Strait

Representatives of 57 founding member nations mark the establishment of the AIIB in Singapore, May 22. (Photo courtesy of AIIB)

since the signing of a financial cooperation agreement in 2009, challenges have emerged because of stalled relations in the last couple of years.

The halted legislative review in Taiwan of the trade-in-services agreement signed in 2013 has restricted the expansion of Taiwanese banks and brokerage firms in China. No new progress has been made over a proposed currency swap agreement that has been discussed between the two sides for some time.

Given these developments, Taiwanese and mainland financial regulators should explore new avenues and seek a breakthrough in cooperation in this area. One area worth trying is the capital market, since Taiwan has seen renminbi deposits exceed 300 billion yuan (US$48.35 billion) in just two years but has not been able to increase the use of the funds for investment purposes.     [FULL  STORY]