Taiwan’s FSC in talks with China to open QDII programme
07 December 2012
News, Asia, China, Taiwan
By Hui Ching-hoo
Taiwan’s Financial Supervisory Commission (FSC) is working with its counterparts in China to extend the criteria of the qualified domestic institutional investor (QDII) programme to PRC lenders. Under current rules, only Chinese QDII securities brokerages or fund houses are allowed to invest in the Taiwan market.
The China Banking Regulatory Commission (CBRC) and the FSC have held talks in regard to reducing restrictions on the QDII program. With that, they plan to sign an MoU to promote QDII coverage to Chinese banks. Details regarding the quota have yet to be finalised, according to the Commercial Times.
Meanwhile, an official from Taiwan’s banking bureau has noted that the existing QDII quota, capped at US$500 million for investment in overseas countries, is too small.
The Taiwan market could have much to gain, given that China’s lenders have a combined QDII quota of $11.3 billion invested in countries elsewhere. The figure is a quarter of the amount the China Securities Regulatory Commission granted to the PRC’s securities firms and fund managers.
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