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Listing requirements for foreign issuer stocks loosened
Taiwan News, Staff Writer
2014-07-07 01:28 PM

Not affected by prior foreign issuer stock controversies, the Financial Supervisory Commission (FSC) has notified relevant agencies such as the Mainland Affairs Council in writing regarding the loosening of restrictions on foreign companies listing in Taiwan. The regulation originally requiring companies with more than a 30% stake held by mainland investors file special applications has been relaxed to allow companies with no more than a 50% stake held by mainland investors to list in Taiwan without a special application. However, Taiwanese constituents must retain control. This policy will be instituted in August at the earliest.

This significant relaxation of the mainland investor shareholding limit by the FSC will help alleviate pressure for foreign issues to list in other locations. According to reports, a portion of 60 ongoing cases is expected to remain in Taiwan for listing.

In addition, the implementation of this deregulation will attract more overseas Taiwanese businesses and foreign companies to list in Taiwan.

According to current regulations, companies registered in China cannot list in Taiwan. Overseas companies not registered in China with a Chinese stake exceeding 30% must file a special application to list in Taiwan. The FSC will relax the Chinese shareholding restriction to no more than 50% and waive the special application.

Consideration of a mainland investment threshold of no more than 50% is primarily to allow Taiwan-China joint ventures controlled by Taiwanese business people and encourage Taiwanese businesses operating primarily in China to list in Taiwan.

FSC officials revealed, the FSC has already solicited suggestions from relevant agencies such as the Mainland Affairs Council in writing. Once these agencies respond, the FSC will officially submit this proposal to the Executive Yuan for approval and amend relevant items. This policy is expected to go into effect in August at the earliest.

The FSC will amend Article 58.1 of “Regulations Governing the Offering and Issuance of Securities by Foreign Issuers.”

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