Fri, Jan 06, 2006 - Page 11 News List

Ceiling on investment in China may be removed


The government plans to abolish the ceiling for public companies investing in China, provided they meet certain requirements in a bid to help strengthen their competitiveness, the top financial regulator said yesterday.

Currently, 37 listed Taiwanese firms have already exceeded the proportion of their net assets that they are allowed to invest in China due to falling valuations at home.

The companies may be allowed to invest more than the current 40 percent of their net asset value if they meet requirements on capital repatriation and dividends and if they promise to use Taiwan as their base, FSC spokesman Lin Chung-cheng (林忠正) said.

"We have suggested the Cabinet consider cases on an individual basis as long as these firms and their investments can be well managed," he said.

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