2011-10-24
Restrictions relaxed on Securities Firms’ Investment in China
In order to meet the investment needs of Taiwanese securities firms, Taiwan’s Financial Supervisory Commission (FSC) has started to discuss amendments to the Regulations Governing Approval and Management of Securities and Futures Transactions and Investment Between the Taiwan Area and the Mainland (China) Area (臺灣地區與大陸地區證券期貨業務往來及投資許可管理辦法). The amendments would relax certain restrictions as set forth below:
1. Increase the maximum amount of investment in China from 40% of net value of securities firms to 60% of the same; and
2. Lower the threshold for a securities firm to make an equity investment in a securities company, securities investment fund management company, or futures company in China from the net worth as stated in their financial reports for the most recent period of NT$ 7 billion to NT$ 5 billion.
According to the FSC’s estimate, the relaxed restrictions will result in the total amount of investment in China to increase by as much as NT$ 90 billion.
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