Tsu-Pei Chen, Chairman of Cathay United, makes a speech during the ceremony for the opening of Cathay United Bank's branch in the Shanghai Pilot Free Trade Zone. [Photo/Taiwan.cn]

The opening of Cathay United Bank's branch in the Shanghai Pilot Free Trade Zone. [Photo/Taiwan.cn]

Taiwan's Cathay United Bank opened its first branch in the Shanghai Pilot Free Trade Zone, on July 25, as a pioneer move for Taiwan banks in the zone.

The branch will have access to favorable trade zone policies to help develop its business in yuan transactions, cross-border trade and investment and financing.

According to Tsu-Pei Chen, chairman of Cathay United, "[By] focusing on foreign trade enterprises in and outside the zone it will work to provide trade financing and cash management, and customize financial products for clients."

An association of Taiwan investors and corporations in Shanghai says that Cathay United is not the only Taiwan financial institution with its eyes on the zone and that First Bank and Bank of Taiwan have already been authorized for zone branches. At the same time, many Taiwan enterprises and banks are looking at opening leasing businesses in the zone.

By the end of June, the zone had 114 Taiwan enterprises operating in it, with total registered capital of more than 1.25 billion yuan ($203 million).