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Taiwan eyes stock investments by Chinese nationals

Taiwan eyes stock investments by Chinese nationals

Taipei, Jan. 7 (CNA) Taiwan is planning to allow Chinese nationals to open accounts with the offshore securities units (OSU) of Taiwanese brokerage firms while traveling in Taiwan and buy shares on the country's stock exchange, Taiwan's top financial regulator said Wednesday. "When Chinese visit Taiwan, they will be able to not only buy local pineapple cakes but also buy local shares by opening accounts in Taiwan," Financial Supervisory Commission Chairman Tseng Ming-chung said. Taiwan does not need to consult with China on the matter, he said, noting that Taiwanese nationals can also open accounts to buy shares when traveling overseas without restriction. Taiwan opened its stock market to Chinese qualified domestic institutional investors (QDIIs) in 2010, and the new measure will allow individuals and retail and big investors to invest in Taiwan's stock exchange as well.
Tseng said the government still has to work out eligibility requirements, the amount the Chinese visitors will be allowed to invest and other details before the plan takes effect. Opening accounts in Taiwan through financial services' institution offshore units will have to be convenient for the plan to succeed, Tseng said, and the government must also figure out how to cooperate with travel agencies in preventing money laundering. "We need to draw up complementary measures," he said.
Tseng said liberalization is a trend, and Taiwan's government cannot only allow Taiwanese to buy shares overseas without allowing foreign nationals to buy stocks while in Taiwan. Taiwan's top financial regulator also argued that with a Taiwan-China trade-in-services agreement stalled in the Legislature, making it harder for financial institutions to expand their businesses into China, allowing Chinese nationals to buy shares in Taiwan will offset the blow to some extent. He expects to see individual Chinese investors buying shares in Taiwan by the end of June or in the third quarter. (By Wu Ching-chun and Lilian Wu)


Updated : 2021-09-23 16:46 GMT+08:00