China’s qualified domestic institutional investors (QDII) will be allowed to invest up to US$500 million in Taiwan’s stock market after Premier Wu Den-yih (吳敦義) approved the regulations governing the investment yesterday, the Financial Supervisory Commission (FSC) said last night.
The FSC initially proposed allowing Chinese QDII funds to invest up to US$1 billion, but Wu decided to reduce the cap by half at the suggestion of central bank Governor Perng Fai-nan (彭淮南).
Lee Chi-hsien (李啟賢), director-general of the Securities and Futures Bureau of the FSC, told a press conference last night that Perng made the suggestion “out of the concern of stabilization of local financial markets.”
Taiwan will see the injection of the Chinese capital into stock markets on Monday at the earliest as two QDII funds have already registered with the stock exchange regulatory authority, Lee said.
Under the regulations, the ceiling of each QDII fund in the country was set at US$80 million.
PROHIBITION
The rules prohibited Chinese funds from buying shares of civil air transport enterprises, air cargo companies, the Taiwan Stock Exchange, the Taiwan Futures Exchange, security industry, construction and development industry, real estate broking industry, broadcast and television industry, suppliers of broadcast and television programs, and telecommunications.
On financial services, the ceiling of each Chinese QDII fund is set at less than 5 percent of a company’s shares, while a cap of all Chinese QDII funds is 10 percent.
NATURAL GAS
A Chinese QDII fund will be allowed to invest less than 10 percent in a natural gas company or in a state-owned company possessed by the Ministry of Economic Affairs, while the cap of Chinese QDII funds in such companies is also set at 10 percent.
The rules were approved before the cross-strait memorandum of understanding on financial supervision cooperation, signed two months ago, takes effect today.
Regulations of wider opening of banking and insurance sectors, which were also covered under the agreement, have yet to be approved by the Executive Yuan.
TYPHOON: The storm’s path indicates a high possibility of Krathon making landfall in Pingtung County, depending on when the storm turns north, the CWA said Typhoon Krathon is strengthening and is more likely to make landfall in Taiwan, the Central Weather Administration (CWA) said in a forecast released yesterday afternoon. As of 2pm yesterday, the CWA’s updated sea warning for Krathon showed that the storm was about 430km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point. It was moving in west-northwest at 9kph, with maximum sustained winds of 119kph and gusts of up to 155kph, CWA data showed. Krathon is expected to move further west before turning north tomorrow, CWA forecaster Wu Wan-hua (伍婉華) said. The CWA’s latest forecast and other countries’ projections of the storm’s path indicate a higher
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
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