TAIPEI (Taiwan News) - NT$25 million (US$810,000) is the new maximum fine for illegal investments from China, following the third reading of an amendment by the Legislative Yuan Tuesday.
The hike from NT$600,000 (US$19,400) was inspired by a Hong Kong affiliate of SinoPac Financial Holdings Co., Ltd. accepting unapproved Chinese funds to invest in the Tatung Group and influence the management of the century-old electronics and household appliance group.
The Financial Supervisory Commission ordered the Chinese investor to withdraw and to pay a fine of NT$600,000, which was deemed too low by many, the Central News Agency reported.
The government said the influx of unapproved Chinese funds was influencing proceedings on the local capital market, requiring more vigorous supervision including higher fines.
Under the amended law, the minimum fine remains at NT$120,000 while only the maximum fine has been increased. If the infringement was of a limited nature, the Chinese investor could avoid fines by correcting the situation and withdrawing the illegal investment within a short time, according to CNA.