January 9, 2014 / 8:36 AM / 4 years ago

Taiwan says to raise cap for Chinese banks to issue yuan bonds

TAIPEI, Jan 9 (Reuters) - Taiwan’s financial regulator said on Thursday it will raise the limit on yuan bonds issued by mainland Chinese banks in Taiwan, depending on the size of yuan deposits.

Bank of China, ICBC and two other major mainland banks sold yuan-denominated bonds worth a total of 6.7 billion yuan ($1.11 billion) last year, joining Deutsche Bank in raising funds as Taiwan’s offshore yuan market took off.

“We hope to see more diversified issuers,” William Tseng, chairman of the Financial Supervisory Commision (FSC), told a news briefing.

The current limit is 10 billion yuan a year.

Banking ties between Taiwan and China have steadily picked up since a yuan currency clearing deal was inked early last year.

Taiwan’s yuan deposits totalled 155.1 billion yuan as of November, up 25.8 percent from the previous month, according to the central bank. ($1 = 6.0512 Chinese yuan) (Reporting by Faith Hung; Editing by Kim Coghill)

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