TAIPEI, Sept 28 (Reuters) - Taiwan’s financial regulator has eased a rule to allow local fund management firms to fully invest in China’s stock markets from their new funds, in the latest sign of warming business ties across the Taiwan Strait.
Taiwan’s fund houses, which manage client assets totaled about T$2 trillion ($68.3 billion), can invest up to 100 percent of their money from future funds in Chinese stocks beginning next month, said an official of the Financial Supervisory Commission on Friday. The existing limit is 30 percent.
The move is part of a broader scheme for the island to give its financial industry bigger access to the massive mainland market. Access to the market has been a key focus for Taiwan’s banks, life insurers and fund managers as they struggle to grow in a saturated home market.
A landmark trade pact in June 2010 opened up the China market to many Taiwan industries and held out the promise of a surge in new business for the island’s financial sector.
But progress has been slow, constrained by acute sensitivity in Taiwan over potential inroads into the finance sector by China, which despite warm business ties remains a political rival and even a possible military foe with a stated ambition to take Taiwan back. (Reporting by Jeanny Kao and Faith Hung; Editing by Eric Meijer)