Next, a major step on cross-strait financial cooperation in the banking sector.

China has given its approval to four Taiwanese banks to set up branches in China, while two mainland banks are also applying for the establishment of representative offices in Taiwan. It is expected to bring new business opportunities to Taiwan's banks and companies.

China has approved four Taiwanese banks, including the Land Bank, Taiwan Cooperative Bank, Chang Hwa Bank, and First Bank, to establish mainland branches, which is a major step on the financial cooperation in the banking sector for Taiwan and China.

According to the Financial Supervisory Commission, this is the first time that domestic banks are allowed to establish branches in the mainland.

It is expected that more Taiwanese banks will follow suit once they pass evaluation.

Under the ECFA, Taiwanese banks in China will be allowed to operate RMB business with Taiwanese companies in China if they yield profit after one year of operation. After two consecutive years of staying profitable, Taiwanese banks can extend their service to companies in China.

This is likely to bring huge opportunities for both Taiwanese companies and Taiwanese banks in the mainland.

In the future, it will be easier for Taiwanese companies to receive loans.

As for the Taiwanese banks, they will stand a better chance of expanding their business.

According to the First Bank, the move to establish branches in Shanghai to conduct Taiwanese companies' banking business is likely to earn considerable profits for the bank.

Meanwhile, China's Bank of Communications and Bank of China have applied to establish representative offices in Taiwan and are awaiting regulatory approval from Taiwan.