Taiwan to curb Chinese investment in key sectors
Taiwan plans to restrict Chinese stock investment in strategic
sectors, as it seeks to keep control of its economy amid rapidly growing
ties with the mainland, local media said Monday.
Chinese institutional investors will be allowed to hold no more than
a total of 10 percent in listed companies in the telecommunications,
aviation and finance industries, the Commercial Times reported, citing
unnamed sources.
The paper also said the Financial Supervisory Commission will meet
with relevant agencies soon to discuss what cap should be set on Chinese
investments in less-vital sectors, according to the paper. The report
was published a week after Taiwan and China signed three landmark
Memorandapaving the way for growing cooperation in banking, insurance
and securities.
The agreements, which will go into effect in January, will enable
Chinese institutional investors to buy shares in Taiwan's stock market
for the first time. The announcement of the signing was met with
criticism that Taiwan's government had acted too fast, without ensuring
proper debate about the implications of the wide-ranging pacts.
In particular, the opposition Democractic Progressive Party, which
favours formal independence from the mainland, has voiced concern that
too close relations with China could cost the island its de-facto
self-rule.
China and Taiwan have been governed separately since the end of a
civil war in 1949, but Beijing still considers the island part of its
territory, awaiting reunification. However, relations have improved
significantly since the China-friendly politician Ma Ying-jeou became
president last year, with last week's memorandum being just one example
of warming ties. The Financial Supervisory Commission declined comment
Monday morning when contacted by AFP. TAIPEI, AFP |