QDII investment cap to be hiked to US$1 bil.

In a conference yesterday, regulatory departments and their counterparts from across the Strait made progress toward the formalization of terms and conditions for the QDII scheme, which stipulates investment of Chinese funds into Taiwanese markets.

In addition, the requirements for Chinese financial institutions to set up branches in Taiwan have been eased, said Huang.

Chinese financial institutions now only require two years of experience in providing international securities and futures knowledge, counting operations in Hong Kong and Macau. Previously, the SFB had set requirements at five years of international operations, excluding Hong Kong and Macau.

Huang also stated that plans are in place to expand the allowable ownership stake Chinese financial institutions may hold in Taiwanese securities and futures operators.

Taiwan has put forth a gesture of great amicability, and will greatly facilitate the process for Chinese financial institutions to set up branches here, said Tong Dao-chi (童道馳), director-general of the Department of International Affairs at the China Securities Regulatory Commission (CSRC, 大陸證監會國際部), while expressing gratitude.

The conference yesterday established a collaborative platform for financial institutions across the Strait, including clearing standards and channels of communication, while paving the way for further dialogue in the future, said Tong.

Current QDII Stipulations

Taiwanese financial institutions' ownership stake of Chinese brokerage companies many not exceed 49 percent, and may not apply for new operations beyond that of investment banks until after two years of operations.

Citing the rapid expansion of Shanghai's A Share Index (A股), and the willingness of Taiwanese institutional investors to participate, Tong said that Qualified Taiwanese companies may create up to one full-service brokerage branch in Shanghai, Fujian, and Shenzen, but Taiwanese shareholding must not exceed 51 percent, while Chinese shareholder status is not limited to Chinese financial institutions.

Tong also indicated that talks are in place to initiate a pilot program for Taiwanese companies to establish a full-service brokerage branch within an experimental financial free zone, with the stipulation that Taiwanese companies' shareholding will not exceed 49 percent.

For investment advisory and futures operations, Taiwanese shareholdings may not exceed 49 percent, but for operations within the forthcoming financial free zone, Taiwanese shareholdings may be expanded to 51 percent.

For fund management operations, under the stipulations of the Economic Cooperation Framework Agreement, Taiwanese shareholdings may exceed 50 percent, which is the key to proliferating trade across the Strait, according to Tong.

SHARE CLOSE
Blogger		Google+
Live Journal		Plurk
Stumble Upon

Tweet

	PREVIOUS ARTICLE
	Wugu-Yangmei overpass opening delayed

NEXT ARTICLE
Taiwan shares close up 0.55 percent

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

 Receive China Post promos
 Respond to this email

Submit