Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200808/20080801/article_368895.htm
Taiwan eases rules to lure investment
Created: 2008-8-1
TAIWAN said yesterday it will further relax control over investment from the Chinese mainland on the island in a bid to bolster the island's financial markets.
Firms with mainland equity investment will be allowed to be listed on the Taiwan Stock Exchange or issue Taiwan Depository Receipts on a case-by-case basis, the Taiwanese government said.
Under the new plan, Taiwan is lifting a long-standing rule that bars any companies with 20 percent or more mainland equity from investing in Taiwan. The island government will lift another rule that bars companies from using funds they borrow or raise in Taiwan to invest in the Chinese mainland.
The steps ¨? expected to be approved by the ''legislature'' in two months ¨? are meant to encourage overseas firms to invest in Taiwan's stock market.
Early this month, the government announced Taiwanese firms would be allowed to invest 60 percent of their net worth on the mainland, relaxing a previous 20-40 percent cap depending on the companies' size.
The new measures are part of a Taiwanese attempt to make the island a financial hub in Asia that might rival Hong Kong and Singapore.
Officials are also planning to cut the island's business taxes to help reach the goal.
Firms with mainland equity investment will be allowed to be listed on the Taiwan Stock Exchange or issue Taiwan Depository Receipts on a case-by-case basis, the Taiwanese government said.
Under the new plan, Taiwan is lifting a long-standing rule that bars any companies with 20 percent or more mainland equity from investing in Taiwan. The island government will lift another rule that bars companies from using funds they borrow or raise in Taiwan to invest in the Chinese mainland.
The steps ¨? expected to be approved by the ''legislature'' in two months ¨? are meant to encourage overseas firms to invest in Taiwan's stock market.
Early this month, the government announced Taiwanese firms would be allowed to invest 60 percent of their net worth on the mainland, relaxing a previous 20-40 percent cap depending on the companies' size.
The new measures are part of a Taiwanese attempt to make the island a financial hub in Asia that might rival Hong Kong and Singapore.
Officials are also planning to cut the island's business taxes to help reach the goal.
Agencies
Copyright © 2001-2009 Shanghai Daily Publishing House