The Financial Supervisory Commission (FSC) said yesterday that the first meeting of the cross-strait financial supervisory platform for securities and futures is scheduled to be held in Taipei tomorrow.
The meeting is scheduled to be held at Taipei 101 and will be chaired by FSC Chairman Chen Yuh-chang (陳裕璋) and his Chinese counterpart, China Securities Regulatory Commission Chairman Guo Shuqing (郭樹清), according to a statement posted on the FSC’s Web site.
Taiwan and China signed a memorandum of understanding on cross-strait financial supervision on Nov. 16, 2009, with a bilateral supervision deal over the banking, brokerages and insurance sectors taking effect on Jan. 16, 2010.
With an increase in cross-strait financial exchanges, it has become necessary for both sides to consult on a regular basis in either Taipei or Beijing over the establishment of a cross-strait financial supervisory platform in a bid to ensure healthy and stable market development, the FSC said.
“This platform will allow the two sides to proceed with policy negotiations over market access and discussions over securities and futures businesses, as well as serving as a venue for information and exchange of opinions on supervisory regulations,” the statement said.
The FSC said the meeting would focus on the details of the planned platform and the operation of the supervisory mechanism.
In addition, the meeting would also address market-opening issues which companies on both sides of the Taiwan Strait are concerned about, as well as exchange ideas on Chinese companies’ initial public offerings — also known as “T-shares” — on the local stock market, the statement said.
Other issues that are likely to appear on the meeting’s agenda include beneficial measures for Taiwanese brokerages operating in China, and increasing the investment ceiling of Taiwan’s qualified domestic institutional investors (QDII) funds investing in Chinese stock markets, as well as raising the investment ceiling for China’s QDII funds investing in Taiwan’s stock markets, local media reported earlier.
Taiwan started allowing China’s QDII funds to invest in the local stock markets in January 2010.
The FSC raised the investment ceiling on the amount Chinese QDII funds may invest in Taiwanese shares from US$80 million to US$100 million in December of the same year, while capping the total of all China’s QDII funds local investments at US$500 million.
Guo, who was appointed as China’s top securities regulator in October 2011, is scheduled to arrive in Taipei today and leave on Wednesday, the FSC said.