TT: In conclusion, what do you think should be done next to further facilitate the securitization plan and its market?
Chao: We hope the government can further loosen some restrictions in the statute. For example, restrictions on investors, whose wealth is required to exceed NT$5 million, should be relaxed. If the wealth limit can be lowered by half, potential investors will grow by some 60 percent to 70 percent. Also, we expect to soon see the launch of high-quality property-backed securities by responsible trust companies and developers. Hopefully, we expect the value of real estate securities will reach NT$110 billion in the first year. If it succeeds, the securitization plan will not only revive the property market, but also attract foreign investors to boost the local economy while bringing down the unemployment rate and enhancing the public's confidence in our economy. Moreover, if undeveloped land with economic value can be included, the securitization scheme will become more effective in bolstering the property sector.
TT: Does your group have any plans to issue such shares?
Chao: Our association is mulling plans to found a trust company to take part in the securitization scheme, hoping that I can chair the company to set up a good market example. But we're still working on it. And my company [Far East Construction Co (遠東建設)] is also planning to issue securities backed by three types of real estate in Taipei valued at NT$500 million, NT$1 billion and NT$2 billion. Both plans still depend on the legislation and its supporting measures being completed soon.
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