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Ministry issues investment data

The Ministry of Economic Affairs has approved four inbound investment projects by overseas Chinese and other foreigners worth a total of US$333.1 million, an official said yesterday.

In the year to date, cumulative investments by overseas Chinese and other foreigners has reached US$13.26 billion, and the amount through the full year is likely to hit a new high, the official said.

Total investments by overseas Chinese and other foreigners last year was US$13.96 billion, the official said.

Of the four inbound projects, Netherlands-based Cooperative Meadowstream Investment WA will invest US$143.27 million (NT$4.63 billion) in Zhong Xi Co (眾希), a financial services company set up by the Carlyle Group as a local investment vehicle.

Carlyle will use the investment, along with an unspecified number of bank loans, to subscribe to new shares issued by the Ta Chong Bank (大眾銀行) to help improve the Kaohsiung-based lender's financial structure, the ministry said on its Web site.

Cooperative Silverdale United Enterprise WA, meanwhile, will invest US$72.37 million in Xiong He Co (雄賀), a local subsidiary of private equity fund Corsair Capital LLC. Corsair will use the investment as part of Ta Chong Bank's private placement deal, the statement said.

Additionally, Citibank would increase its stake in its Taiwan branch by US$61.73 million, it added.

The Investment Commission also approved 15 China-bound investment projects worth more than US$350 million. Twelve of the projects involve an increase in capital investment by Taiwanese enterprises already operating in China.

The official said that many Taiwanese companies were now accelerating their China-bound investment before implementation next year of a new tax system in China in which Taiwanese firms will not enjoy preferential tax rates.

China will equalize the income tax rates of domestic and foreign enterprises starting Jan. 1, and will only offer preferential tax policies to companies dedicated to high technology, environmental protection and energy efficiency, the official said.

To cash in on the current preferential tax rates, many domestic firms are rushing applications for investment or for increasing paid-in capital in pre-existing operations in China.
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