Taiwanese leasing firm gains hold in Shanghai

State-owned Taiwan Business Bank (TBB) says its leasing subsidiary has begun operations in the Shanghai Pilot Free Trade Zone (PFTZ) as part of moves to grow its overseas presence.

The bank’s leasing business was first awarded a nationwide business license by the Shanghai Administration for Industry and Commerce in April, allowing it to conduct equipment leasing and the acquisition of leased properties across China.

Now the company has become the first Taiwanese financial institution to operate in the Shanghai PFTZ. TBB says it wants to take advantage of laxer regulations there on capital flows to meet its customers’ needs. The bank is seeking to expand its wealth management business by 20% to 30% this year.

TBB is also looking at expanding into Australia, Cambodia, Myanmar and Malaysia. Overseas operations generated 23% of the bank’s income last year, and TBB forecasts this could reach 25% this year.

TBB is aiming to build up its lending to the SME market, with plans to reach out to companies with annual revenues of NT$30 million and below, as they account for 92% of the nation’s 1.34 registered firms.