Fubon Financial Holdings, one of Taiwan's biggest private financial services companies, plans an aggressive expansion in China to take advantage of improved market access from better cross-Strait relationships, according to its president.
Victor Kung told the Financial Times that Fubon hoped to become a powerhouse in eastern China by opening about 200 branches in the coastal Fujian province, which sits directly across the Strait from Taiwan, in the next five years. He also said Fubon was interested in potential mergers and acquisitions in China's fund management industry and would shortly apply for a fund management licence from Chinese regulators.
Fubon, which owns Taiwan's second-biggest life assurer, was one of the first Taiwanese banks to try to enter China when it bought Hong Kong-listed International Bank of Asia in 2004. The unit, later renamed Fubon Bank (Hong Kong), bought a 20 per cent stake in Xiamen Commercial Bank for Rmb230m in late 2008. The Chinese bank has 32 branches in Xiamen, capital of Fujian province, and Mr Kung estimates that it would cost Rmb450m ($66m) to set up another 120.