TAIPEI - Taiwan approved Thursday the Bank of China and Bank of Communications to remit operation funds to their Taipei offices as the mainland headquartered banks prepare to open branches on the island.

The two commercial banks are allowed to shift 1.2 billion New Taiwan dollars ($40 million) and 1.55 billion New Taiwan dollars, respectively, for the running of their branches Taipei.

The Bank of China and Bank of Communications respectively established representative offices in September and November 2010.

China Construction Bank and China Merchants Bank, another two major mainland banks, also have Taipei representative offices which they set up in May and June 2011, respectively.

So far, six Taiwan commercial banks operate branches in the mainland. Another two banks of the island, Chinatrust Commercial Bank and Mega International Commercial Bank, which got approval by mainland authorities last November, are preparing to set up mainland branches.

Taiwan's financial authorities also on Thursday gave the nod to a shipping company in the coastal province of Fujian to set up a branch in the island.

Furthermore, the authorities ratified seven application cases of Taiwan companies investing in the mainland, with a total value of $390 million, including Hon Hai Precision Industry setting up two more mainland branch companies with investments of $50 million and $70 million, respectively.

Hon Hai, led by Terry Gou, currently has large investment in the southern province of Guangdong, under its brand, Foxconn.

Other newly-approved mainland investment items are Taiwan Glass Industry Co., Ltd's capital increment of $60 million, and two Taiwan companies' investment in the property market of Shanghai, southwestern Chengdu and northeastern Shenyang.