(On July 31, 2008, conditions were relaxed for public listing in Taiwan by overseas enterprises; On December 4, 2008, Qualified Domestic Institutional Investors in mainland China were allowed to invest in Taiwan's securities and futures market)
Starting from August 14, 2008, the government has eased restrictions on the qualification required for public listing in Taiwan by overseas enterprises and on fund-raising purposes. It has not only removed the restrictions that banned any foreign companies with Mainland-bound investments exceeding the ratio of its net worth from launching initial public offering (IPO) in Taiwan and being listed on Taiwan’s over-the-counter (OTC) market, but it has also removed the requirement that banned any foreign companies with over 20 percent of its shares owned by Mainland investors or any such companies whose major shareholders are Mainland investors from making a secondary listing on the Taiwan Stock Exchange (TSE) or OTC market. Moreover, it has removed restrictions that banned foreign issuers from using funds raised in Taiwan to make direct or indirect investment in mainland China. In the near future, Qualified Domestic Institutional Investors (QDIIs) from mainland China will be allowed to invest in Taiwan’s securities and futures market.
Benefits: These measures will encourage overseas enterprises to publicly list in Taiwan, thereby upgrading the international level of Taiwan's capital markets.
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