Cross-strait equity exchange adds to improving ties

The mainland and Taiwan plan to set up a cross-strait equity exchange centre in Fujian province as relations between the two sides improve.

The centre may be funded by 10 institutions including state-owned Xiamen Jinyuan Investment and a unit of Taiwan's SinoPac Financial, SinoPac chief financial officer Michael Chang said yesterday. "It's an exchange for junior shares, aiming to help early-stage or small companies [on the mainland] to raise funds," he said.

The announcement follows other signals of strengthening links between the two sides. The mainland and Taiwan can consider starting military exchanges to ease concerns over military security, Xinhua reported at the weekend.

Other backers of the equity-exchange centre include Xiamen Rural Commercial Bank, Guosen Securities and Citic Securities, China National Radio reported, citing Wang Juan, the centre's manager.

The plan was still at an early stage and SinoPac needed Taiwanese regulatory approval for the investment, Chang said.

SinoPac was the only Taiwan company involved, but it planned to invite other businesses from the island to join, he said.