The Financial Supervisory Commission (FSC) yesterday said that 39 domestic publicly traded companies, among 52 companies whose China-bound investments have exceeded their ceilings, will be immediately rewarded by the government's relaxation policy of increasing the previous 40 percent cap to 60 percent of their net assets.
“The new policy will take effect after Aug. 1 to benefit companies planning to increase investments in China, while offering incentives for them to set up headquarters in Taiwan,” FSC Chairman Gordon Chen (陳樹) told a media briefing.
“Local businesses no longer need to detour into China any more,” he said.
In spite of the government’s new deregulatory move, Chinese investments made by the remaining 13 companies, however, will still exceed their ceilings.
“The reason is mainly because they have been ill-performing and their capital bases have reduced,” Securities and Futures Bureau Director General Wu Tang-chieh (吳當傑) told the briefing.
If the 13 firms were headquartered in Taiwan, they would soon be able to enjoy no limit on their China-bound investments, he said.
After the limit-free policy takes effect, 444 publicly traded companies, with a total market capitalization of NT$11 trillion (US$362.33 billion), or 61 percent of all 900 publicly traded firms’ net assets as of the first quarter, would be allowed to freely invest in China, he said.
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