Jerry Yang

Industrial & Commercial Bank of China Ltd. (1398.HK), China's largest bank by market value, will buy a 20% stake in Taiwan's Bank SinoPac, marking the first investment by a mainland lender in one of the island's banks.The deal reflects growing economic ties between China and Taiwan, and its announcement comes just one day after the two sides agreed to relax rules on cross-strait financial-sector investment.Trade and investment across the Taiwan Strait have grown significantly since Taiwan's China-friendly President Ma Ying-jeou took office in 2008, improving once-hostile relations. They signed a landmark trade pact in 2010, removing some investment barriers and tariffs on hundreds of goods.China now buys around 40% of Taiwan's exports. In January, Taiwan recorded a monthly trade surplus with China, including Hong Kong, of US$5.87 billion. Taiwan also became China's third offshore yuan clearing center in February, after Hong Kong and Macau, and the island's banks and securities brokerag...

Read More ›