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Minister promises strict monitoring to prevent hostile takeovers

Minister promises strict monitoring to prevent hostile takeovers

Taipei, May 4 (CNA) Well-devised supervisory mechanisms will be put in place before opening Taiwan to Chinese investment, Minister of Economic Affairs Yiin Chii-ming said Monday.
Yiin made the assurance amid concerns that the upcoming opening of the door to Chinese investment may lead to hostile takeovers of local companies by Chinese investors.
The Ministry of Economic Affairs is scheduled to unveil late this month a series of regulations governing Chinese investment in Taiwan and a list of industries or sectors that would be open to Chinese investors.
Yiin said that if a Chinese investor or company acquires more than a 10 percent stake in a local enterprise, it will be regarded as a direct investment in Taiwan, which will be subject to strict monitoring and supervision.
Chinese investment, regardless of direct investment in local industries or through purchases of local shares, will all be closely monitored to prevent irregularities and maintain market order, Yiin said, adding that investment applications by Chinese companies and individual entrepreneurs will all be strictly screened to begin with.
(By Sofia Wu)