China’s qualified domestic institutional investors (QDIIs) will be able to invest in the local stock market from next Monday (May 4), following the publication of the “measures governing investments by mainland Chinese investors in Taiwan`s securities and futures” by the Financial Supervisory Commission (FSC) on Thursday.

The measures allow China`s QDIIs to hold up to 10% shareholding in local listed firms, without the right of sitting on their board of directors. They, however, can cast votes and present motion via proxy in shareholders’ meeting, according to the measures. FSC can also ask them to supply information of ultimate beneficiaries. They will have to apply with the FSC for holding more than 10% share in listed firms.

Under the Chinese regulations, QDIIs can currently invest up to 3% of their assets, estimated NT$240 billion now, in Taiwan, amounting to NT$7.4 billion, which will be raised to 10%, or NT$24 billion, after the signing of cross-Strait memorandum of understanding for financial-supervision cooperation.

QDIIs, along with foreign investors, must be subject to the existing restrictive ceilings on foreign shareholdings for a number of lines, including natural gas, transportation, aviation, shipping, and telecommunications.