With increasing of Taiwanese businessmen's investment in the Chinese mainland since 1990s, the frequent cross-straits economic and trade activities have given rise to the volume of finance business, which makes people in the finance industry, both in the mainland and Taiwan, optimistic for the outlook of the cross-straits finance cooperation.

The volume of cross-straits financial business has reached US$ 42 bln from January to May, according to statistics from Taiwan's financial authority. This year the total volume is to exceed 100 US$ bln provided the current trend is maintained.

The Chinese mainland has ratified seven Taiwan based banks to put up offices in the mainland since 2002. Some insurance companies from Taiwan have received approval to establish branches as well.

There are nearly 20 branches of Taiwan's banks, insurance companies, and security companies in Shanghai, the finance center of the mainland. The first joint venture bank and insurance company between the mainland and Taiwan have begun to operate too. The Taiwan authority has lifted ban on the overseas branches of Taiwan's financial institutes to do business with the mainland's legal persons, organizations and other institutes directly.

The vigor and potential of the cross-straits financial cooperation has drawn attentions from financial industries. Prof. Lu Hongjun, President of the Shanghai Institute of International Finance said at the Shanghai Taiwan Finance Forum 2004 that finance industry of the Chinese mainland and Taiwan can supplement each other, benefit each other and interact with each other. There is a broad outlook for cross-straits cooperation.

Zhang Pingzhao, president of the Taiwan Society for Research and Development in Finance says the Chinese mainland has become one of the two largest markets of capital transfer. He hopes the finance industries across the strait will seek for mutual benefit and form a cooperative relation.

According to Prof. Xu Zhenming of the Department of Economics of the Taiwan University, the opening of cross-straits direct money remittance and the direct contact between Taiwan-based banks and banks in the mainland will enormously save time and cost for businessman. Permitting Taiwan's banks to remit money to Taiwanese businessmen at the mainland will promote the cross-straits capital flow and give the Taiwanese businessmen multi channels for raising capital.

By People's Daily Online