Taiwan eases controls on Chinese bank investment

TAIPEI, Taiwan (AP) -- Taiwan says it is relaxing controls on Chinese investment in the island's banks.

Taiwan financial regulator Kuei Shen-nung said Monday that the maximum stake a Chinese bank can have in a Taiwanese lender is being increased to 10 percent from 5 percent.

He said Chinese investors can have a combined 15 percent stake in a Taiwanese lender, up from 10 percent.

The announcement followed a meeting in Taipei with China's top banking regulator Shang Fulin.

Taiwan and China split amid civil war in 1949, but have been drawing closer economically in recent years. They signed a broad agreement in 2009 to foster financial cooperation.