FSC may allow Chinese banking QDIIs to invest in Taiwan
The Financial Supervisory Commission (FSC) is considering to allow the qualified domestic institutional investors (QDIIs) under the jurisdiction of China Banking Regulatory Commission (CBRC) to invest in Taiwanese stocks after the memorandum of understanding for cross-Taiwan Strait cooperation in financial supervision takes effect in early 2010, rather than just QDIIs under the jurisdiction of China Securities Regulatory Commission (CSRC), as now planned, said Sean Chen, FSC chairman, on Tuesday.
If materialized, the liberation will inject up to NT$25 billion extra fresh fund into the local bourse, based on a similar investment ceiling of 10%.
Statistics of China’s State Administration of Foreign Exchange show that up to now, China Banking Regulatory Commission has approved the setup of 22 QDIIs, with approved fund quota totaling US$7.96 billion (around NT$257 billion), including Bank of China, Industrial and Commercial Bank of China, China Construction Bank, and China Merchants Bank, each of them has been granted fund quota ranging US$500-1.5 billion.
By comparison, the total fund quota of QDIIs approved by China Securities Regulatory Commission tops NT$1 trillion, with the actual fund-raising amount reaching NT$370 billion, up to 10% of which, or NT$370 billion, can be used to buy Taiwanese stocks.
Meanwhile, total fund quota of QDII under the jurisdiction of China Insurance Regulatory Commission hits US$14.43 billion, but they are not permitted to invest abroad.
More Info: http://www.taiwanheadlines.gov.tw/ct.asp?xItem=174208&CtNode=39
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