Mitsubishi UFJ buys 6 pct stake in Taiwan's Yuanta -paper

TAIPEI (Reuters) - Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz), Japan's biggest bank, has bought a 6 percent stake in Yuanta Financial (2885.TW: Quote, Profile, Research, Stock Buzz), becoming its second-largest shareholder, the Commercial Times reported on Monday.

The partnership comes as both parties aim to expand Yuanta's brokerage business in Hong Kong and eventually tap into the fast-growing China market, the paper said, without citing sources.

Officials of Yuanta, the island's top brokerage, were not immediately available for comment.

The Japanese firm planned to raise its stake to 10 percent and obtain a board seat by June 2009, the paper said.

Yuanta is controlled by the Ma family, which owns a 20 percent stake, it said.

Taiwan's financial industry has attracted major global banks and private equity funds such as Carlyle Group [CYL.UL], in part because many believe the administration of President-elect Ma Ying-jeou and the Kuomintang Party (KMT) favour closer trade ties with the mainland.

At noon, Yuanta shares fell 2.9 percent, lagging the broader market's 's 0.02 percent gain. Shares of Mitsubishi UFJ dipped 1.6 percnet in Tokyo trading.

(US$1=T$30.75)

(Reporting by Faith Hung; editing by Ken Wills)