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Cathay United Bank signs MOU with China Development Bank

2011/12/31 14:00:19

Taipei, Dec. 31 (CNA) Cathay United Bank, a banking arm of Taiwan-based Cathay Financial Holding Co. Ltd., has signed a memorandum of understanding (MOU) with China Development Bank (CDB) to forge closer cross-Taiwan Strait business ties.

The Taiwanese bank said Friday that the MOU was the fourth cooperation agreement between the bank and a Chinese counterpart, after the accords inked with Agricultural Bank of China, Bank of Communications and Bank of China.

After establishing the new partnership, Cathay United Bank and CDB will work with each other in corporate financing, transaction settlements, trade financing, investment banking, fund-raising and asset management.

They will also step up efforts to carry out personnel training in a bid to further boost business exchanges, the Taiwanese bank said.

Cathay United Bank said CDB, which was established in 1994 under the direct jurisdiction of the State Council, is responsible for providing long-term funds for large infrastructure projects and major economic development programs in China.

The Chinese bank has been described as the engine to power mainland China's national development policies.

In addition, the Chinese partner has entered the international funding business by signing cooperation accords with partners in more than 20 countries, including in the field of mining development in West Africa and Latin America and energy development in Central Asia and Russia.

So far, CDB has set up business ties with more than 100 financial institutions worldwide, acting as the largest Chinese bank in the international financing sector.

Currently, CDB runs 34 branches and two representative offices in China and overseas outlets in Hong Kong, Cairo and Moscow.

For its part, Cathay United Bank has opened a branch in Shanghai since December 2010 to tap a large number of Taiwanese investors operating in China.

Earlier this month, Cathay Financial announced that it's unit Cathay Securities Investment Trust Co. will set up a fund management company in Beijing with CDB's subsidiary China Development Bank Securities Co.

The joint venture will be capitalized at 200 million Chinese yuan (NT$960 million) with Cathay Securities Investment Trust to take a 33.3 percent stake and CDB Securities to own the remaining 66.7 percent.

(By Tien Yu-pin and Frances Huang)