Taiwan opens stock market to Chinese investors from today
18 Jan 2010
China's institutional investors can buy shares in Taiwan's stock market from today, with purchases by any single investor limited to $80 million, the island's the Financial Supervisory Commission said in a statement posted on its Web site.
The announcement came as a memorandum of understanding signed last November between the sides took effect, allowing the establishment of banking, securities and insurance firms in each other's territory.
The current investment cap would amount to less than 5 per cent of the total capitalisation of the Chinese institutional investors approved by mainland authorities.
However, buying shares in local airlines, telecom, real estate and broadcasting firms will remain barred.
Taiwan had for decades barred Chinese capital, fearing it could give Beijing control of the local economy, but opened select industries to Chinese investment for the first time last year.
In an effort to stabilise local financial markets, Taiwanese authorities have in recent weeks tried to halt an influx of foreign capital that has driven up local shares prices and currency.
.webp)
