Taipei, Fubon Financial Holding Co. in Taiwan said Thursday that will sign a memorandum of understanding (MOU) with Xiamen Bank in China to strengthen cooperation.
In a statement released Thursday night, Fubon Financial said that under the MOU, it will maintain its investments in Xiamen Bank and build on their business ties.
Fubon Bank (Hong Kong), a branch of Taipei Fubon Commercial Bank, the flagship banking subsidiary of Fubon Financial, is the second biggest shareholder in Xiamen Bank with a 19.95 percent stake, after the Xiamen Municipal Bureau of Finance.
The acquisition of that stake 10 years ago has helped Fubon Financial extend its reach into the Haixi region in China, according to the statement.
Xiamen Bank currently has more than 40 branches and sub-branches in Chinese cities such as Fuzhou, Quanzhou, Zhangzhou, Chongqing and Putien, and a workforce of about 1,600.
Meanwhile, Fubon Financial holds a 100 percent stake in Fubon Bank (China) Co., Ltd. in Shanghai, which has a full-banking service license in China and a license for yuan transactions.
Fubon Bank (China) also has branches and sub-branches in Shanghai as well as in Shenzhen, Tianjin, Suzhou, Nanjing, Beijing, Chengdu, Wuhan, Xian and Guangzhou, which compliments its business with Xiamen Bank, according to the statement.
According to reports, however, Taipei Fubon Bank is planning to dispose of Fubon Bank (Hong Kong).
Financial authorities in Taiwan have been urging Fubon Financial to acquire its subsidiary's stake in Fubon Bank (Hong Kong) before the disposal, according to the reports.
In its statement, Fubon Financial did not address the reported disposal plan.
Source: Focus Taiwan News Channel