The first wholly Taiwan-funded hospital on the Chinese mainland opened in Shanghai on Tuesday. It was also the first Taiwan hospital to benefit from the signing of the Economic Cooperation Framework Agreement in 2010.

Shanghai Landseed International Hospital was built with 150 million yuan from the Taipei-based Landseed International Medical Group. The hospital will provide comprehensive services to people from Taiwan, local Chinese mainland residents and foreigners, according to the hospital.

"We felt that the demand for high-end medical services on the mainland, especially in first-tier cities such as Shanghai, Guangzhou and Beijing is very large," said Victor Chang, founder and president of Landseed.

The group got involved in a joint-venture with Shanghai Chenxin Hospital in 2002, which mainly serves people from Taiwan.

He said the number of patients from the mainland expected to be treated at the new hospital will in three years exceed 50 percent, up from the current 20 to 30 percent.

The signing of economic cooperation agreement allowed investors from Taiwan to set up wholly owned hospitals in Shanghai as well as Fujian, Jiangsu, Guangdong and Hainan provinces. Investors from Hong Kong and Macao are welcomed under a similar pact known as the Closer Economic Partnership Arrangement to set up wholly owned hospitals in Shanghai, Chongqing, Fujian, Guangdong and Hainan.

"Investors from Hong Kong, Taiwan and Macao are welcome to develop the medical industry on the mainland. They can hopefully form good interaction with public hospitals," said Liu Zhenqiu, deputy director of the healthcare reform office under the State Council.