Taiwan’s prior laws allowed Chinese banks to have a maximum of only 5 percent stake in a Taiwanese lender. After a meeting with Shang Fulin, China’s top banking regulator, it was decided that Chinese banks can now have up to 15 percent stake. This easing of the laws between China and Taiwan shows the increasing economic integration of the two countries in recent years. This freedom should aid China’s economic development as increased investment opportunities and most likely increased trade will lead to growth.
Well, this may help shareholders in such banks but is surely irrelevant for China’s economy. Furthermore, 15% is still a minority stake. It may be a way to cement joint ventures inside China (we’ll buy 15% of you, you buy xx% of us). Otherwise, well, yawn.