Taiwan will soon allow local property developers to invest in China's real-estate market, an official with the economics ministry said yesterday.
The total value of Taiwanese investments in the mainland property market for the first year would be limited to NT$10 billion (US$287 million), the official said.
Local property developers would be allowed to spend up to US$10 million in each property-development project in China, the official added.
The official did not give any details on when the liberalization would take effect.
The measures would be limited to developers who have been in business for more than three years, posted a profit in at least two of the last three years and had a debt-to-net-worth ratio of below 50 percent.
But Taiwanese developers would still be banned from investing in industrial-zone developments and public-works projects in China.
"We are maintaining a cautious attitude toward the Chinese property market, which is at risk of becoming a bubble after years of fast growth," the official said.
Before being allowed to invest, firms will be asked to explain how their plans would benefit Taiwan financially, the report said. The government will limit total annual investment by all companies in China's market to NT$10 billion (US$287 million), the report said.
Pressured by Taiwanese companies, the government realizes the need for a liberal policy, but must balance that with its fear that rising investment could benefit China and weaken the Taiwanese economy.
RSS