The nation's listed companies are seeing a healthy return on investment from China and have repatriated "decent" profits to the home market, the Financial Supervisory Commission said yesterday.
As of the third quarter, 803 Taiwanese companies listed on the Taiwan Stock Exchange and Gretai Securities Market had a cumulative investment of NT$486.2 billion (US$14.45 billion) in China, up from NT$416.1 billion from 783 firms for last year, the commission said.
These companies wired a total of NT$38.7 billion back to Taiwan, which accounted for 7.97 percent of their total investment in China, up from some NT$30.4 billion, or 7.32 percent, over the same period.
"The figures showed a decent inbound remittance ratio ? and indicate a nice return on investment ratio for those companies," commission spokesman Lin Chung-cheng (
He shied away from answering when asked if release of the figures was aimed at supporting the commission's proposal to conditionally relax a regulatory ceiling on Chinese investment by Taiwanese companies.
Publicly traded firms in Taiwan are only allowed to invest 40 percent of their net value in China. The commission suggested last week a relaxation of the rules under certain conditions, including repatriating profits made in China to Taiwan, in order to contribute to cash dividends and strengthen corporate governance.
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