FACTBOX-Chinese banks set to enter Taiwan market

TAIPEI Nov 17 (Reuters) - Taiwan and China inked a financial services pact on Monday, opening the way for banks on both sides to buy a stake in each other and allowing Taiwan's financial firms to tap the fast-growing Chinese market.

Here are the Chinese firms are looking to set up branches in Taiwan or buying a stake in their Taiwanese counterparts upon the signing of the memorandum of understanding (MoU):

* Bank of China (601988.SS) (3988.HK), the country's biggest foreign exchange lender, said it is ready to open a branch on the island and will apply for regulatory approval as soon as possible. "Band of China hopes to and is capable of being part of the first batch of mainland commercial banks to open outlets in Taiwan," spokesman Zhao Rong said in a statement on Tuesday. [ID:nPEK201714]

* Other major state-controlled lenders, including Industrial and Commercial Bank of China (601398.SS), Bank of Communications (3328.HK) and China Merchants Bank (600036.SS), are also planning to set up branches in Taiwan, analysts said.

* Beijing Bank (601169.SS) said it would accelerate the process of setting up a branch in Taiwan and is seeking Taiwanese partnerships on SME lending, Taiwan media have reported.

* Among Taiwanese financial firms that could attract stake investments by Chinese firms are Cathay Financial (2882.TW), Fubon Financial (2881.TW), Taishin Financial (2887.TW), Chinatrust Financial (2891.TW) and Sinopac Financial (2890.TW), analysts said.

* China Galaxy Securities Co, the largest mainland broker, has said the company will apply to set up branches here and is looking for tie-up opportunities with Taiwan firms, according to Taiwan media reports. <For a story on the MoU click [ID:nTP200826]> <For a Q+A on the MoU click [ID:nTP43936]> (Reporting by Faith Hung; Editing by Lincoln Feast)