* China says half prep work done for RMB-T$ clearing system
* Says hopes prep work for clearing system to finish asap (Recasts; Adds comments, details)
By Faith Hung
TAIPEI, Dec 1 (Reuters) - China's commercial banks are preparing a currency clearing system with their Taiwanese counterparts, a top official at China's central bank said on Tuesday, sparking hopes such a system will be ready soon.
Chinese commercial bank officials have completed more than 50 percent of the preparatory work necessary to set up a system for transactions between the Chinese yuan and the Taiwan dollar, Hu Xiaolian, a vice governor of the People's Bank of China, told reporters in Taipei.
"We hope the preparation work and technical details will be finished as soon as possible," Hu said, without giving a timetable.
"When the clearing system kicks off, it would benefit banks on both sides. They won't have to pay global banks for clearing fees anymore," said Hu.
She was leading a group of executives from China financial firms, including China Construction Bank <601939.SS><0939.HK> and China Life <2628.HK><601628.SS>, on a visit to Taiwan.
Last month, Taiwan and mainland China sealed a ground-breaking financial services pact, paving the way for banks on both sides to buy a stake in each other and allowing the island's financial firms to tap the massive Chinese market.
China and Taiwan have improved trade relations since President Ma Ying-jeou took office in 2008, with bilateral deals promoting tourism and shipping links already concluded.
(For a TAKE A LOOK on the financial services pact, please double-click [ID:nTP165902])
The clearing system can kick off before Chinese banks open branches in Taiwan, Hu added,
(Additional reporting by Roger Tung; Editing by Ken Wills) ((faith.hung@thomsonreuters.com; +886 2 2508-0815; Reuters Messaging: faith.hung.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))