萬國法律事務所

The “Regulations Governing Chinese Investors Coming to Taiwan to Engage in Securities Investment and Futures Trading” (Regulations) drafted by the FSC has recently been approved by Taiwan’s Executive Yuan, and as a result, Chinese investors will be allowed for the first time to invest in Taiwan’s stock market in the near future.

In order to broaden the scale of Taiwan’s capital market, the FSC plans to open Taiwan’s stock market to the following three categories of Chinese Investors: Chinese qualified domestic institutional investors (QDII); Chinese nationals who are employed by Taiwanese listed or OTC companies; and Chinese shareholders of overseas companies that are listed on Taiwan’s stock or OTC markets. The second category investors are also permitted to subscribe to or hold allotted shares of such listed companies, but they will only be allowed to sell the shares they subscribe to or are allocated and will not be allowed to purchase shares.

The Regulations further stipulates that Chinese investors engaging in shares trading in Taiwan must designate a local agent or representative to conduct the transactions or exercise their voting right, and such Chinese investors must not substantively control or influence the management of companies in which they invest, nor are they permitted to be elected to the positions of company directors or supervisors.