Premier Yu Shyi-kun has given government officials a month to come up with a plan to allow China-based Taiwanese busi-nesses to list their mainland units here.
At a government-hosted conference for China-based busi-nesspeople in Ilan on Thursday, Yu said flatly that the ministries "haven't been very creative" in fulfilling the policy.
The government decided at least a year ago that the companies should be able to list their mainland units in Taiwan, part of a deal to encourage them to boost investment in the nation. But so far none have applied.
Following Yu's address, Mainland Affairs Council Vice Chairman Chiu Tai-san (
Taiwanese companies are barred by law from raising money by listing their shares here if they have invested more than 40 percent of their total net worth in China.
Chiu said the government may relax the restriction regarding the definition of 40 percent of a company's net worth. He didn't elaborate.
New regulations would probably require further discussions between the council, the central bank and the ministries of finance and economic affairs, according to officials who attended the conference.
The local capital market has a chance of becoming a gateway to Chinese markets if China-based businesses can list here, econo-mists and analysts said earlier this month at a seminar.
Compared to neighboring capital markets, the local stock market enjoys the advantages of a lower price-earnings ratio, lower listing costs and high liquidity, Edward Tsai (
Taiwanese corporate investment in China rose to a record US$4.6 billion last year as companies shifted production to take advantage of low labor costs and to tap growing demand in cities.
RSS