Taiwan’s financial regulator has increased the maximum that domestic equity funds can hold in any single listed company from 10% to 25% to help bolster the competitiveness of local asset managers.
But the limit, which is based on a fund’s net asset value and also applies to active exchange-traded funds, cannot exceed a company’s weighting in the Taiwan Stock Exchange Weighted Index.
“The relaxation is in response to the rapid development of the domestic technology industry in recent years and the growing market capitalisation share of some large listed companies,” the Financial Supervisory Commission says in a statement on April 23.
“This measure will enhance operational flexibility for funds, encourage asset managers to offer a more diverse range of fund products, and improve their overall competitiveness.”
