By
The main TAIEX index dropped 0.13 points to 6,966.35, after opening flat.
The financials sub-index was the top gainer, up 1.9 percent, with Cathay Financial Holding Co Ltd climbing 4 percent.
Taiwan's government said on Tuesday that qualified Chinese banks could invest in stakes of up to 5 percent in local banks.
Electronics plays slipped 0.5 percent. Nanya Technology Corp erased early gains and dropped 0.46 percent, after its chairman denied a report that it was in talks with Japan's Elpida Memory Inc on a possible tie-up.
The Taiwan dollar was down T$0.017 at T$30.302.
Foreign investors were net buyers on Wednesday, bringing their total buying to T$18.9 billion this month.