China could invest in local real estate market: SEF

SEF Vice Chairman Kao Koong-lian said the investment would have to focus on offices and factories rather than on housing in the initial stages.

In addition, areas adjacent to airports and ports are sensitive and Chinese investment in those areas would also need to be restricted, Kao said. He made the remarks when he attended the launch of a new book — an English-language version of the 1,000 biggest Taiwanese businessmen of 2008.

On Chinese investment in the securities market, Kao said there would have to be complementary measures such as an imposition of tax and an investment duration to avoid short-term speculation by Chinese investors.

Kao’s remarks came amid concerns in some sectors over the government’s continued relaxation on cross-strait policy.

In a related development, the Executive Yuan announced earlier that day that it will raise the ceiling on Taiwanese companies’ investments in China to 60 percent of their net asset values.

At present, most publicly listed Taiwan companies are restricted from investing more than 40 percent of their net asset values in China, while the limit is 20 percent for large-scale business groups.

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