May 07, 2009

Chinatrust Financial, Taiwan's top credit card issuer, said on Thursday it was open to China banks investing in the firm and planned to form a subsidiary in China, in the latest sign of easing ties across the Taiwan strait.Chinatrust (2891.TW) and other peers in the local banking industry - Asia's No.4 banking market - were pinning their hopes on the massive mainland market as both Taiwan and China have pledged to open their financial markets to each other.

Most forms of investment in China are now closed to Taiwan's financial institutions such as Chinatrust, but cross-strait ties have improved significantly under a year-old China-friendly administration led by President Ma Ying-jeou, leading both sides to pledge to open up many of their financial markets."We do not rule out such investments. Many China banks have expressed their interests via investment banks," chief investment officer Daniel Wu told reporters.