China and Taiwan have are a step closer to removing constraints over cross-strait economic ties after agreeing to permit Taiwanese banks to acquire stakes in mainland banks, it has been reported.
Under the terms of the provisional agreement between the countries Taiwanese banks would be able to buy shares in the lenders via subsidiaries in Hong Kong.
Prior to the opening of talks between the two countries, Taiwanese law forbade country's banks had been unable to invest banks in China, which claims sovereignty over the island, the Financial Times reports.
Hu Sheng-cheng, head of the Financial Supervisory Commission, Taiwan's financial regulator, has not revealed the details of the proposed reform to the regulations but did say that the two parties are "one step away from an opening of banking links"
Mr Hu also said that, pending delays, the amendment could and predicted it be enacted as early as April this year.
