Sat, Jul 24, 2004 - Page 10 News List

FSC hands over listing proposal

INVESTMENT ANALYSIS The Financial Supervisory Committee gave Cabinet its thoughts about China-based Taiwanese companies raising funds in this country

By Amber Chung  /  STAFF REPORTER

Financial authorities said yesterday that they have delivered a report to the Executive Yuan on a proposal for China-based Taiwanese companies to be listed in the local bourse -- without giving a time frame for implementation.

Financial Supervisory Commission Chairman Kong Jaw-sheng (龔照勝) yesterday dismissed Chinese-language press reports that the commission has failed to deliver a proposal in line with Premier Yu Shyi-kun's demands.

The proposal was delayed because stock regulators could not agree on what proportion of funds raised in this country could be invested in China, the reports said.

On June 23, Yu ordered stock regulators to propose plans within one month to allow Chinese companies funded by Taiwanese investors to sell shares here. The task was taken over by the commission after its establishment on July 1.

Kong did not elaborate on the time frame for the plan's implementation yesterday and said that it would be more appropriate for the premier to reveal the details.

He made the remarks at a conference with securities firms and futures companies on the new structure and plans of the Securities and Futures Bureau.

The commission welcomed the idea of listing Chinese-based Tai-wanese companies that have great potential and need capital for expansion, Kong said.

As for the idea of gradually relaxing the 7 percent daily limit on stock market fluctuations, Kong said that the plan is in line with global practices and the commission's goal is to help the local bourse catch up with the international community.

The issue, however, is a not priority at the moment, Kong said.

Securities and Futures Bureau Director General Wu Tang-chieh (吳當傑), who presided over yesterday's conference, said officials are considering relaxing the daily limits on the companies to be listed in the stock market in the future.

In light of the Procomp Informatics Ltd (博達科技) scandal, strengthening corporate governance and establishing an early warning mechanism are among the bureau's plans, Wu said, including amending the Securities Transaction Law (證券交易法). The bureau plans to place the legal obligations and responsibilities for misleading financial reports on company officials, he said.

Commission member Lu Tung-ying (呂東英), who attended the conference, said the Securities and Futures Investors Protection Center (證券投資人及期貨交易人保護中心) should be more aggressive about releasing information on companies involved in lawsuits by providing details as early as possible to help protect investors.

The center usually discloses such information after the high courts have reached a verdict.

Lu said the center should provide relevant information whenever a district court issues a verdict.

"We will press charges against board members and company officials as soon as we gather enough concrete evidence of their failure to fulfill their responsibilities to investors," said Chan Tsai-hung (詹彩虹), president of the center, adding that the center would sue those involved in malfeasance and go after those who can pay compensation.

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