China's BoCom eyes $100 mln stake in Taiwan's Taishin

TAIPEI, Nov 19 - China's Bank of Communications <3328.HK> wants to invest $100 million in Taiwan's Taishin Financial <2887.TW>, as China and Taiwan work on a deal to boost investment between their financial sectors, media reported on Wednesday.

Shares of Taishin jumped by their daily 6.9 percent limit when trading began on Wednesday in Taipei, following the report in Taiwan's Chinese-language Commercial Times.

According to the report, Bank of Communications <601328.SS> hired an investment bank to compile a list of possible investment targets in Taiwan before deciding on Taishin.

Such cross-strait investments were essentially banned in the past, but the two political rivals are currently negotiating a new framework to allow such deals under a new China-friendly administration that took office in May.

That agreement is expected to be finalized in the first half of next year.

Taishin President Lin Keh-hsiao said five to six major Chinese banks had approached his company, but declined to comment on any specific suitors, according to the Commercial Times.

Mainland bank officials traveled to Taiwan earlier this month during a landmark visit to the island by China's top negotiator on Taiwan affairs. But no specific tie-ups have been announced to date.