萬國法律事務所

After the implementation of the currency settlement mechanism, people in Taiwan will have many ways to deposit and transfer Chinese RMB, as well as make investments in that currency. Taiwan’s Financial Supervisory Commission announced on 4 September that it will amend the relevant laws and allow people to deposit and transfer Chinese RMB at banks and post offices, and banks will also be permitted to invest in Chinese RMB as a commodity currency. In addition, the security investment trust industry will also be permitted to issue Chinese RMB funds.

The newly amended laws will allow Taiwan’s post office to provide deposit and transfer of Chinese RMB services just as those provided by the Domestic Banking Unit of each bank. As a result, there will be more than 4,000 offices in Taiwan providing Chinese RMB deposit and transfer services. According to the Director General of the Banking Bureau in Taiwan, the government does not plan at this stage to limit the amount of deposits of Chinese RMB that people will be permitted to make.

The Director General also stated that after the amendment, no bank will have to apply for the Financial Supervisory Commission’s permission before providing Chinese RMB related services. Nevertheless, according to him, investment in the Chinese RMB as a commodity currency may be limited to offshore commodity currencies due to the fact that these banks are not qualified to invest in securities in China.

As to the security investment industry, people will be permitted to choose to invest in these Chinese RMB funds. Nevertheless, domestic and foreign companies may not be able to issue Chinese RMB dominated bonds, as this will involve further revision of the regulations and the system.

The Chief Secretary of the Insurance Bureau has stated that the only permitted insurance is an investment-linked product. Traditional insurance will not be permitted, as it will involve the necessity of qualifications for life-insurers to invest in China and other, more complicated factors.