Gov't Plans to Further Liberalize Stock Investments by Chinese QDIIS

Taipei, Dec. 11, 2012 (CENS)--In order to vitalize the stock market, the Executive Yuan (the Cabinet) instructed yesterday (Dec. 10) the Financial Supervisory Commission (FSC) to formulate measures encouraging foreign and mainland Chinese investors to invest in Taiwan and relax conditions for foreign enterprises to list their shares on the Taiwanese bourse, so as to diversify the products on the market.

Market insiders said that according the instruction, the FSC may permit mainland Chinese banking QDIIs (qualified domestic institutional investors) to invest in Taiwan's stock market, which is open only to mainland Chinese securities QDIIs now. In addition, it may double the investment quota for Chinese QDIIs to US$1 billion.

The instruction was made by Guan Zhongmin, minister without portfolio, in a meeting for discussing the program for vitalizing the stock market. Guan asked the FSC to formulate measures diversifying stock-market products and enhance the funding momentum for the market. An official participating the meeting said that in order to diversify stock-market products, the meeting concluded that the government should further relax the conditions for foreign enterprises to list their shares on the centralized or over-the-counter market and encourage domestic enterprises in the fields of innovative cultural industry and agriculture to apply for share listing.

Guan emphasized that the program for vitalizing the stock market will not address the issues concerning the imminent implementation of stock transaction gains tax or investments by domestic funds. Guan asked the Ministry of Finance (MOF) to intensify its explanation of the levy of stock transaction gains tax, so as to dispel the concern of stock investors. The Executive Yuan is scheduled to put forth the program for vitalizing the stock market by the end of this year.