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China's QDIIs Net Remit NT$5.75 B. to Invest in Taiwan Stocks

2011/04/07 | By Ben Shen

Taipei, April 7, 2011 (CENS)--China's qualified domestic institutional investors (QDIIs) have remitted US$195 million, or NT$5.75 billion, to invest in Taiwan stocks, according to statistics compiled by Taiwan's Financial Supervisory Commission (FSC), who says that the QDIIs show more interest in the local bourse, with their number registered in Taiwan having increased to 11 from only seven at the end of last year. The registered QDIIs have applied to invest US$220 million, or NT$6.5 billion, in Taiwan's stock market.

FSC's Securities & Futures Bureau rules state that QDIIs have to remit funds within six months after obtaining investment approval.

The latest regulation introduced at the end of last year raised the maximum investment for a single QDII to US$100 million from NT$80 million, also allowing investment in TDRs (Taiwan depository receipts).

All the QDIIs in Taiwan are allowed to invest up to US$500 million, or NT$14.75 billion, an amount that may be eased after negotiations between the FSC and the Central Bank of China.

Conversely, seven Taiwanese investment trust firms, including Fubon, Capital, Polaris, Cathay, Yuanta, Fuhwa and Prudential, have applied with Chinese authorities to be qualified foreign institutional investors (QFIIs), with the former three having been approved.

Fubon is allowed to invest up to US$100 million in China's stock market, and is preparing to apply with the FSC to invest in China's A-share ETFs (exchange traded funds).