Further liberalization of Investment Funds Investing in PRC Securities

Taiwan government recently announced the limit imposed on offshore investment trust funds investing in Mainland Chinese securities was lifted from 0.4% to 10%, and in addition, the limits on the so-called H shares and Red Chip shares are totally removed. The move was seen to assist Taiwan’s financial sector in making inroads on the Greater China market including Hong Kong, Macao and Mainland China. There have also been talks to remove the 40% restriction on direct investment in Chinese companies by Taiwanese companies.