Nov. 11 (Bloomberg) -- The head of Taiwan’s financial regulator will brief lawmakers on a memorandum of understanding on financial supervision with China on Nov. 16, an official said.

“Taiwan and China have basically reached a consensus on the contents of the MOU,” Lu Ting-chieh, chief secretary at the Taipei-based Financial Supervisory Commission, said by telephone today. “How fast we can sign the agreement will depend on whether we need to tweak the documents after the briefing.”

The accord would pave the way for cross-strait investment in the banking, insurance and securities industries. The document is part of a broader agreement reached in April during the third round of talks between Taiwan and China in Nanjing.

Ties have improved since President Ma Ying-jeou took office in May 2008 and dropped the pro-independence stance of his predecessor. Closer relations with China, Taiwan’s biggest trading partner, may help Ma speed the recovery of the export- dependent economy that shrank 7.54 percent in the second quarter.

The agreement is due to be submitted to Premier Wu Den-yih and the Cabinet for approval after the presentation to lawmakers, before the signing with China, Lu said.

The mainland is ready to sign the document, Yang Yi, a spokesman with the Beijing-based Taiwan Affairs Office of the State Council, told reporters today. Both sides said the time and place for the signing have yet to be determined.

“Investors are very tired of the MOU as we have been given a blow-by-blow account,” said Eric Chou, who helps manage about $1.8 billion at Jih Sun Securities Investment Trust Co. in Taipei. “Unless the actual MOU surpasses our expectations, I think the market has priced in the benefits.”

To contact the reporter on this story: Janet Ong at jong3@bloomberg.net

Last Updated: November 11, 2009 02:23 EST