Yangzijiang Shipbuilding (Holdings) Ltd, began trading on the Taiwan Stock Exchange Wednesday, making it the first Chinese-controlled firm to raise capital on the island, officials said.

Local investors responded eagerly as the firm, based in China's eastern Jiangsu province, surged by its seven percent daily limit to 20.1 Taiwan dollars.

The company, which is also listed in Singapore, raised around 4.5 billion Taiwan dollars (140 million US) with its offering and plans to use the proceeds to boost its manufacturing capacity, the Taipei-based Economic Daily News said.

"The market reaction was not surprising at all, given its status as the most profitable private shipbuilder in China," said Mars Hsu at the Grand Cathay Securities.

The company, which builds commercial vessels and containerships, saw its net profit rise 27 percent from a year ago to 6.5 billion Taiwan dollars in the six months to June.

earlier related report

Two major Chinese banks seek offices in Taiwan: report
Taipei (AFP) Sept 8, 2010 –

Two state-controlled Chinese banks have applied to Taiwan authorities to set up representative offices on the island, the first mainland lenders to do so, reports said Wednesday.

The Bank of China, the mainland's third-largest lender by assets, and Bank of Communications, the fifth-largest, filed their applications to the Financial Supervisory Commission on Tuesday, according to the Commercial Times.

Lin Tung-liang, the deputy chief of the commission's Banking Bureau, told the newspaper that screening of the applications would take up to two months.

Officials from the Banking Bureau could not be reached for comment on Wednesday.

The applications, the latest sign of fast-warming ties between the island and its giant neighbour, came after six Taiwanese banks applied to set up branches in China.

Chinese banks will be allowed to open branches one year after their representative offices have become operational, according to an economic agreement signed by Taiwan and China in late June.

China still considers Taiwan part of its territory, even though the island has governed itself since 1949 at the end of a civil war.

But ties between the two sides have improved markedly since Ma Ying-jeou of the China-friendly Kuomintang came to power in 2008, pledging to beef up trade links and allow in more Chinese tourists.

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