Taiwan's Financial Supervisory Commission is removing the cap on investment by Taiwanese onshore fund companies in Chinese securities.
This will give the said Taiwanese companies more flexibility in meeting the needs of investors.
The commission said in a statement that domestic securities investment trust companies and discretionary account managers would no longer be subject to a rule that restricts their investment in Chinese securities at up to 30 percent of their net value.
The commission said the relaxation was also aimed at helping onshore fund managers better compete with their foreign rivals.
Taiwanese onshore fund companies that have gained qualified foreign institutional investor licenses from China and the requisite investment quota include Fubon Asset Management Co, Cathay Securities Investment Trust, Capital Securities Investment Trust Co, Fuh Hwa Securities Investment Trust Co, Prudential Financial Securities Investment Trust Enterprise Co and Yuanta Polaris Securities Investment Trust Co.
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