Taiwan will open up its funds and bonds to Chinese investors beginning in November. That was the word from the Financial Supervisory Commission on Thursday. The decision is a move to boost the domestic capital market.
The commission’s Vice Chairman Kuei Hsien-nung said that Chinese nationals who have residency in Taiwan and Chinese enterprises that have invested in Taiwan dollar denominated funds will not be limited by the US$500 million cap put on other funds.
In addition, Kuei said that Chinese tourists to Taiwan will also be able to invest in Taiwan dollar denominated funds as Qualified Domestic Institutional Investors (QDII).
"A natural person such as a tourist who has entered Taiwan legally but does not have a residence permit will be able to invest in New Taiwan Dollar denominated funds," Kuei said. "However, they will be subject to the US$500 million limit. Mainland Chinese investors outside of Taiwan will not be able to invest in the same funds."
Kuei said those qualified to invest in Taiwan do not include Qualified Domestic Institutional Investors from China. Therefore, he said the new move will not affect the cross-strait trade in services agreement. Kuei said the investment targets are foreign currency funds and bonds, so China will not control domestically listed companies.