Taiwan’s Bank buys Mainland China’s
Fubon has been approved to buy approximately 20% of Xiamen City Commercial Bank at a price of US$34 M. The biggest shareholder of Xiamen City Commercial Bank is the Xiamen City government’s Commerce Bureau, approximately 24%. Fubon is traded in international exchanges. Fubon is expected to name members to the board.
Xiamen City Commercial Bank is a local bank. Xiamen (Amoy) has the heavies concentration of Taiwan businesses. This local bank is not a troubled bank. The significance is not who bought whom, but the approval by Taiwan’s authorities. This will be considered a plus for Fubon.
Taiwan’s government bureaucrats are quick to recognize the president elect Ma and quickly steering to approvals that would be considered as consistent with his platform. There probably will be other approvals before May that are considered favourable to businesses/industries building ties to Mainland China.
