Taipei, Nov 16 (DPA) Taiwan signed a financial service agreement with China Monday in a long-awaited move to boost cross-strait financial investments in the future.

'Our two sides signed the financial memorandum of understanding at the same time on Monday,' said Sean Chen, chairman of the Financial Supervisory commission, in a news conference.

Under the deal to become effective in 60 days, the two sides agreed on issues, including exchange of financial information, risk management and financial inspection, Chen said.

Commission officials said with the pact, banks, insurers and brokers from Taiwan and China will be allowed to tap each other's markets, which would subsequently lead to the opening of the financial markets of the two sides in the future.

Except for stock investment via a third party, Taiwan currently bans local banking and insurance institutions from investing or setting up branches in China. It also bars Chinese banking and insurance institutions from investing on the island.

Taiwan and China were once bitter rivals since they split at the end of a civil war in 1949, but relations have improved after President Ma Ying-jeou of the Nationalist Party or Kuomintang took office in May last year and adopted a policy to engage Beijing.