BEIJING -- The Chinese mainland will adopt diversified measures to optimize the financing environment for Taiwanese enterprises, the mainland's top Taiwan affairs official Wang Yi said Friday.
The mainland will support more Taiwanese banks to set up branches on the mainland, provide banking services in renminbi (RMB) and back their expansion of service networks into central, western and northeastern regions, according to Wang.
The mainland will support financial institutions across the Taiwan Strait to strengthen their cooperation and overcome bottlenecks in financing for Taiwan businesses, said Wang, who is the director of the State Council's Taiwan Affairs Office.
Wang made the remarks at the signing ceremony of a Memorandum of Understanding (MOU) between his office and the China Construction Bank, which features a "green channel" for Taiwan enterprises to obtain loans.
An MOU on financial supervision, signed between the mainland and Taiwan, took effect in January 2010, allowing banks to set up branches on each other's sides.
Prior to the document, Taiwanese banks could only set up representative offices on the mainland.
According to the document, only mainland branches of Taiwanese banks that turn a profit in the first year of operation are allowed to provide banking services in RMB for Taiwanese companies on the mainland. They will be able to operate RMB business for all clients after two profitable years.