FSC May Ease Restrictions on Qualified Domestic Institutional Investors

Taipei, Sept. 11, 2012 (CENS)--To attract more mainland Chinese investments to Taiwan, the Financial Supervisory Commission (FSC) may ease restrictions on qualified domestic institutional investors (QDIIs) from China to invest in Taiwan's stock market and raise maximum investment by QDIIs to US$1 billion from the current US$500 million, a move that has to be discussed with the central bank in Taiwan and Mainland Affairs Council.

T.C. Wu, vice chairman of FSC, indicated that Taiwan allows only QDIIs regulated by the China Securities Regulatory Commission (CSRC) to invest in Taiwan, while FSC hopes to ink memorandum of understanding (MOU) with China Banking Regulatory Commission (CBRC) and China Insurance Regulatory Commission (CIRC) to allow regulated QDIIs to invest in Taiwan.

So far CSRC-approved overseas investments by Chinese QDIIs total US$45.1 billion, and those approved by CBRC and CIRC total US$11.3 billion and US$20.1 billion, respectively.

To cope with changes in financial market resulting from the recently signed currency settlement agreement between China and Taiwan, the FSC plans to revise outdated financial rules and will invite bankers, securities firms and insurers to a seminar this month for such purpose.