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Lawmakers seek to help local businessmen in China get yuan loans
Central News Agency
2014-09-03 07:27 PM
Taipei, Sept. 3 (CNA) Several legislators departed for Shanghai Wednesday with the aim of helping Taiwanese businessmen in Shanghai's free trade zone to be able to get Chinese yuan-denominated loans more easily and cheaply than at present. Legislator Lai Shyh-bao of the ruling Kuomintang and Legislator Lee Ying-yuan of the main opposition Democratic Progressive Party said they will visit Shanghai's free trade zone and the China Banking Regulatory Commission's Shanghai Office, as well as Taiwan-funded banks and enterprises. Lai said he is hopeful that the "Kunshan model" can be expanded to other cities in China. The model, which began last year on a trial basis in Kunshan, allows Taiwanese enterprises in that city to obtain yuan-denominated loans from their parent companies in Taiwan. Lee noted that the model only applies to Kunshan, which is unfair to Taiwanese businesses in places like Shenzhen and Xiamen. He expressed hope that the model can be applied to other cities. Taiwan launched yuan-denominated operations in February 2013, backed by a currency clearing mechanism set up by Taiwan and China. It can handle yuan deposits, but yuan loans related to China still need to be approved by the Chinese authorities. (By Chou Yi-lin and Lilian Wu)
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