Thu, Dec 23, 2010 - Page 12 News List

FSC raises ceiling on QDII investment

By Crystal Hsu and Kevin Chen  /  Staff reporters

The Financial Supervisory Commission yesterday raised the investment ceiling on the amount China’s qualified domestic institutional investor (QDII) funds may invest in Taiwanese shares from US$80 million to US$100 million each in response to the changing economic environment.

The commission said in a statement that the upward revision came after discussion with the central bank and in response to requests from investors at home and across the Taiwan Strait, according to the statement.

The commission also expanded China’s QDII fund investment targets to include Taiwan depository receipt (TDR) issuances as well as primary and secondary listings by foreign companies, the statement showed.

The new measures are expected to take effect on Monday at the earliest and must first be approved by the Cabinet.

Taiwan started to allow China’s QDII funds to invest in the local stock market in January this year after the two sides signed a memorandum of understanding on financial supervision cooperation late last year.

Collectively, all of China’s QDII funds are still capped at a total of US$500 million in investment in local equities.

The FSC yesterday maintained the US$500 million cap unchanged to address concerns about the stability of local financial markets.

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