The Financial Supervisory Commission (FSC) yesterday raised the investment limits by domestic fund managers in Chinese securities to 30 percent of net asset worth, from the current 10 percent.
The financial regulator said the relaxation aims to allow local securities investment trust and asset management firms greater flexibility in meeting the needs of investors so they could better compete with foreign rivals.
Henry Lin (林弘立), chairman of securities investment trust and consulting association, said the opening would make the performances of cross-strait securities markets closer.
The move will also help channel Taiwan’s excessive liquidity to China to exploit its fast--growing economy, Lin said.
The 30 percent cap will not apply to exchange traded funds (ETFs), meaning local fund managers can create 100 percent investment funds traded on China’s stock exchanges.
Currently, China-linked ETFs are all issued by companies in Hong Kong or other third locations, which causes investors to pay higher fees.
“The nation will soon see domestically created China funds following the relaxation,” Lin said.
Fubon Asset Management Co (富邦投信), among others, has applied to launch such products to help customers capitalize on Chinese equities.
Financial firms have also been calling on the government for looser lending rules governing Taiwanese branch offices in China. Officials from Taiwan and China are slated to discuss the issue in April.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
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