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Taiwan to Ease Limit on Mainland Investments by Listed Firms
Taiwan will relax mainland-bound investments by allowing local listed companies to raise more funds overseas for their mainland projects.
Listed firms would be able to invest a maximum of 50 percent of the funds they raised from convertible bonds or depository receipt issues abroad, up from the current 20 percent, sources said.
Such funds would be treated separately from the indigenous funds which they used for mainland projects, the island's finance department said in a statement.
Currently, the department caps mainland-bound investment by a listed firm at 40 percent of its paid-in capital while the Securities and Futures Commission sets a limit of 20 percent of its net worth.
The planned liberalisation was in line with a recent call by Taiwan leader Chen Shui-bian for isle businesses to join overseas partners in investing in the mainland, sources said.
Taiwan is a leading investor in the mainland, having pumped about 50 billion US dollars into the mainland since authorities allowed civil exchanges between the two sides in late 1987.
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