ABSTRACT In the past decades, the investment of Taiwan enterprises in mainland China, cross-strait trade and banking intercourse were required in indirect ways in view of economic security by the government due to the special political cross-strait relationship, which was the reason that the government could not get over exact amount of capital flowing into mainland China precisely. On the other hand, because of the various constraints on investment in mainland China, some companies transfer capital to mainland through various circuitous channels for the reasons of more flexible operations and avoiding government¡¦s regulations, which makes the cross-strait capital flow more complicated. No matter how cross-strait political situation goes, mutual business relationship is getting prosperous, we can tell from the fast growth of investment in mainland China, where is still the first choice to transplant for Taiwan's industrialists. Comparing y2000 and 2008¡¦s prime index statistics of cross-strait business collected from Mainland Affairs Council and Ministry of Economic affairs, the total volume of cross-strait trade (including Hong Kong) increased from US dollar 31.24 billion up to 105.37 billion that represented 3.4 times¡¦ growth; Taiwan¡¦s trade surplus against Mainland China was US dollar 18.78 billion increasing to 42.58 billion that represented 2.3 times¡¦ growth; Taiwan¡¦s export volume to mainland China (including Hong Kong) took 24.4% of total export volume in 2000 and then the percentage grew up to 38.5% in 2008, it was 1.6 times¡¦ expansion; the investment amount in mainland China was increased by 4.1 times from US dollar 2.607 billion to 10.61billion; the investment in mainland China took 33.9% of total outward investment in 2000 and then it grew up to 57.1% in 2008, it was 1.7 time¡¦s growth. Based upon the phenomenon the said statistics revealed, this study conducts deeper analysis in a practical way in capital flow across strait for solving investors¡¦ problems of fund raising and financial operation especially in the financial cash flow issues derived by trade, it tries to give financial layout advices for those who invested in mainland China or traded across strait. This study conducts analysis with SWOT and Porter¡¦s five forces model for reviewing an enterprise¡¦s Strength, Weakness, industrial¡¦s Opportunities and Threats from competitor it confronts. This study analyses chosen subject¡¦s (bank) strength and opportunities with SWOT model. Porter¡¦s five forces model is conducted for stress analysis on five kinds of impact on enterprises¡¦ operation. From conducting analysis on chosen subject, we discover that Porter¡¦s five forces model is interesting because it can spread and extend. For example, from the aspect of cooperation (ex strategic alliance) instead of competition, a lot of cooperative opportunities may emerge among the global competitive banking institutes. In the other way, verifying chosen bank through Porter¡¦s five forces model can also apply to discuss the issues of vertical and horizontal integration of banking industry. An analysis through this model concludes that applying offshore banking financing is the most favorable to enterprises and their operation flexibility. Banking industry in Taiwan will ultimately face the impact of competition from mainland China¡¦s banks after the MOU is signed. No matter being the banks¡¦ share holders in mainland China¡¦s banks, or setting up branches there directly, all banks include ones from Taiwan or cross nation banks cannot compete with the top four big state-run banks in mainland China according the conclusion of this study. This study tries to offer proper advices to the banks in Taiwan for making good operation strategies.