A view of Taipei, the island of Taiwan Photo: VCG

China's financial regulator has rolled out 16 policy measures to boost the integration of banking and insurance sectors between East China's Fujian Province and the Taiwan region, paving the way for stronger economic and trade ties across the Taiwan Straits, China Media Group (CMG) reported on Friday.

These measures, announced by the National Financial Regulatory Administration, focus on supporting qualified banks from Taiwan in establishing subsidiary entities or branches within Fujian, according to CMG.

The measures also encourage eligible financial institutions from Taiwan to invest in or acquire stakes in Fujian-based legal-person banks, trust companies, and other financial organizations, the report said.

These initiatives aim to leverage Fujian's strategic role as a front-runner in cross-Straits relations by deepening financial collaboration, enhancing financial services for Taiwanese entities, facilitating economic and personnel exchanges, improving the convenience of financial services for Taiwanese compatriots, and strengthening overall financial supervision to mitigate potential risks.

The 16 policy measures are in four key areas: promoting the integration and development of the banking and insurance sectors between Fujian and Taiwan, deepening cross-Straits financial cooperation, facilitating economic and personnel exchanges, enhancing the financial service experience for Taiwan compatriots, and strengthening comprehensive financial oversight.

"These measures are expected to actively support the creation of a demonstration zone for cross-Straits integration and drive economic and trade cooperation," the report said.

The latest actions add to a series of financial support measures for its eastern Fujian Province to explore new paths for integrated development across the Taiwan Straits that China released in June.

It includes steps aimed at optimizing the financial ecosystem for a cross-Straits shared "living circle" and facilitating pilot programs for high-level opening up in the cities of Fuzhou, Xiamen and Quanzhou, which are all located in Fujian, per a previous Xinhua News Agency report.

The latest initiatives also include supporting Fujian's insurance institutions to explore and develop innovative insurance products that cover both sides of the Taiwan Straits.

Fujian's banks are encouraged to enhance support for the integration of industrial and supply chains between Fujian and Taiwan, prioritizing funding for projects listed in the major project catalog for Fujian-Taiwan integration and development.

The measures also promote deeper cooperation in key industries such as electronic information, machinery and equipment, and petrochemicals, while supporting the expansion of Taiwanese agriculture and fisheries in Fujian, with strengthened financial backing.

In line with real estate regulatory policies, Fujian's banks are supported in providing mortgage loans on equal terms to eligible Taiwan residents, meeting their reasonable demand for purchasing self-occupied commercial housing in Fujian, the CMG report said.

Furthermore, Fujian's banks are encouraged to expand the use of convenient service methods, particularly to address the financial needs of residents in Kinmen and Matsu, contributing to the creation of a "shared urban living circle" between Fuzhou and Matsu, as well as Xiamen and Kinmen, per the report.

Global Times