Securities regulators are mulling ways to relax rules regarding investment by foreign institutional investors, according to the Taiwan Stock Exchange.
The move is a bid to attract more foreign investment. Foreign investors often complain of the long, cumbersome process that is required to become a qualified foreign institutional investor, or QFII, which is necessary to buy Taiwan stocks.
According to executives at the stock exchange, the Securities and Futures Commission has asked for a review on the rules imposed on foreign investors. The review is to be completed in two months and aims to establish a more liberal system, like the one found in Singapore.
Stock exchange officials note that the call for the review comes as Taiwan prepares for entry into the WTO.
Currently, foreign investors have to apply to the central bank before being permitted to invest in the local stock market.
In addition, when foreign investors want to remit their investment funds overseas, the central bank must also sign off on the request.
In more liberal capital markets such as Hong Kong and Singapore, no such restrictions exist.
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