Taiwan encourages two-way RMB lending
Taiwan’s central bank issued a circular to spur two-way renminbi lending with china called “the RMB circulation mechanism”. The note, issued September 3, details the process for intra-group lending of Taiwanese corporations and promoting the use of offshore renminbi for equity investments in the Kunshan zone. The subsidiaries of Taiwanese-invested enterprises and the branches of Taiwan-funded banks in Kunshan can borrow renminbi from Chinese domestic banks. The loan size will be capped at the net worth of these subsidiaries or branches in Kunshan.