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China Does Not Need To Invade Taiwan

It will just buy it, piece by piece.
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It will just buy it, piece by piece.

Industrial & Commercial Bank of China Ltd., the world’s largest bank by market value, plans to buy 20 percent of Taiwan’s Bank Sinopac in the first mainland investment in a lender on the island….

Sinopac and other banks stand to benefit from partnerships with mainland lenders as they seek to expand outside Taiwan’s saturated market. Chinese President Xi Jinping has pledged to promote cross-strait ties, continuing efforts of the previous administration….

Taiwan’s Financial Supervisory Commission said April 1 mainland China banks will be allowed to take a 10 percent stake in listed financial institutions, 15 percent in unlisted firms and as much as 20 percent of banking units of financial holding companies, compared with a previous 5 percent across-the-board cap. The announcement followed a meeting between China Banking Regulatory Commission Chairman Shang Fulin and FSC Minister Chen Yuh-chang.

Regulatory changes allowing for the higher limits will take effect as soon as possible pending final approval by the Cabinet, Kuei Hsien-Nung, director general of the FSC’s banking bureau, said by phone yesterday.

ICBC Seeks Sinopac Stake in China's First Bid in Taiwan [Bloomberg via BW]
ICBC deal for SinoPac unit is a first for Taiwan [MarketWatch]


Making Money Very Nearly Illegal In China Now

So, that's added a fun dimension to things.