Taipei,Oct.12,2012--Premier Sean Chen expressed yesterday(Oct.11)that the government will greatly lift the restrictions on foreign investments in Taiwanese industries not only in the manufacturing sector but also in the financial-service sector,such as raising the maximum stake owned by mainland Chinese banks in local banks and the development of Taiwan T shares to bolster the capital market.
Kuan Chung-min,minister without portfolio,noted that Taiwan T shares refer to shares of mainland China-registered enterprises listed on the Taiwanese stock market.A financial official revealed that in order to develop financial businesses with cross-Taiwan Strait characteristics,the government is studying the feasibility of allowing Taiwanese-invested businesses registered in mainland China and foreign enterprises containing over 30%of mainland Chinese capital to list their shares on the Taiwanese stock market.
Wu Tang-chieh,vice chairperson of Financial Supervision Commission(FSC),pointed out that in the plan for the development of financial businesses with cross-Strait characteristics,the government has decided to encourage Taiwanese-invested enterprises registered in mainland China to list their shares on the Taiwanese bourse.The government will make further in-depth study on whether to allow pure mainland Chinese enterprises to list their shares on the Taiwanese stock market and even permit such shares to be traded in renminbi.Securities&Futures Bureau,under FSC,Taiwan Stock Exchange,and GreTai Securities Market have formed a task force to study the proposal.
The concept of Taiwan T shares is similar to that of Hong Kong H shares,which refer to shares of mainland China-registered enterprises listed on Hong Kong's stock market.H shares are traded in Hong Kong dollar.
Premier Chen also instructed to raise the maximum stake owned by mainland Chinese banks in Taiwanese banks,which is now set at 5%,greatly dampening the interest of mainland Chinese banks.The government may raise the ceiling to 20%,similar to the level owned by foreign investors in mainland Chinese banks,according to the regulation of China Banking Regulatory Commission.
Chen expressed the importance of loosening the restrictions on financial service industry.He said related government officials should embrace a positive and constructive mindset for investments by mainland Chinese banks in Taiwanese banks,substituting management for control,as well as making openness a norm and control an exception.