Newsletter
AMENDMENTS TO RULES ON INVESTMENTS IN MAINLAND CHINA SECURITIES MARKET
On 14 July 2008 the Financial Supervisory Commission (FSC) issued three orders amending the rules that govern investments made by offshore funds, securities investment trust funds, and discretionary investment business in the securities traded on Mainland China securities markets. The changes are outlined below:
- Offshore funds: Investments in securities traded on Mainland China securities markets, made by an offshore fund that is offered and sold in Taiwan, are limited to listed securities, and the total investment amount may not exceed 10% of the fund's net asset value. However, this restriction does not apply to offshore exchange traded funds that have been approved by the FSC to be listed or traded on the Taiwan Stock Exchange.
- Securities investment trust funds: Investments in securities traded on Mainland China securities markets, made by a securities investment trust fund offered in Taiwan by a securities investment trust enterprise, are limited to listed securities, and the total investment amount may not exceed 10% of the fund's net asset value.
- Discretionary investment business: The investment in securities traded on Mainland China securities markets, made by a securities investment trust enterprise or a securities investment consulting enterprise from the assets managed under their discretionary investment business, are limited to listed securities, and the total investment amount may not exceed 10% of the net asset value of the discretionary investment account.