萬國法律事務所

After the Memorandum of Understanding on Cross-Strait Financial Supervision (“MOU”) comes into force, Taiwanese securities houses will be able to invest in the securities houses in the PRC, but they will not be allowed to establish any branches in the PRC. The upper limit of such investment volume will be increased 40% of the net of the Taiwanese securities houses. Following this new standard, it is estimated that more than ten securities houses in Taiwan will be qualified for investment in the PRC.

A new policy similar to the aforementioned will also apply to PRC securities houses. Specifically, securities houses in the PRC are also permitted to invest in the securities houses in Taiwan but will not be allowed to establish houses here. That said, for most securities houses in the PRC, the securities market in Taiwan seems too small. Even though some PRC securities dealers are still interested in investing in Taiwan, the largest securities dealer, i.e. CITIC Securities Co., Ltd., has expressed no such interest.