China to open A shares to Taiwanese investors on April 1
By Linger Liu, The China PostTAIPEI, Taiwan -- Taiwan-based investors will be able to invest in Chinese A shares from April 1, China Securities Depository and Clearing Company Ltd. (CSDC) said yesterday.
March 10, 2013, 12:13 am TWN
A new regulation will allow Taiwanese to apply for an A share investment account by presenting a Taiwan ID, Mainland Travel Permit for Taiwan Residents, or temporary mainland residency certificate.
A shares, which under Chinese law may not be issued to foreigners, are shares in the Chinese currency and traded on the Shanghai and Shenzhen exchanges.
The change will also entitle Hong Kong and Macau investors to purchase A shares.
B shares are similar to A shares and may be owned by non-Chinese citizens. According to the CSDC, B shares trade alongside A shares on the mainland exchanges.
B shares trade in U.S. dollars in Shanghai and in Hong Kong dollars in Shenzhen.
A China New Service report said investors must present three pieces of documentation to apply for an A share account: a mainland travel pass, an ID certificate from the investor's original place of residency, and proof of accommodation registration with the mainland authorities.
The report said that there are around 450,000 Taiwan, Hong Kong and Macau citizens currently residing in the mainland. The change in legislation to allow them to hold A share accounts comes as a response to their expression of interest in the investment, and after taking into consideration these residents' stable income.