The Financial Supervisory Commission (FSC) is planning to allow Chinese retail investors to invest in the Taipei stock market.
In a hearing at the legislature on Thursday, FSC chairman William Tseng said the internationalization of capital markets is a global trend. He said Taiwanese retail investors are also investing in overseas markets through sub-brokers. Tseng said the FSC hopes to open the Taiwanese market to retail investors from other countries. But he said if Chinese retail investors are allowed to invest in Taipei’s stock market, the FSC will impose certain restrictions.
"We’re still in the assessment stage, and will not open [our market to Chinese retail investors] within the short term. If we do open our market, there will be accompanying measures," Tseng said. "For example, there will be caps on individual stocks and the total amount of stocks traded. There will be a daily limit as well"
Tseng said that Taiwanese listed companies are reasonably valued and have better corporate governance than their Chinese counterparts. He said that the Taipei stock market should prove to be attractive to Chinese investors.