Mainland to expand opening of capital market to Taiwan

The Chinese mainland's securities regulatory body announced on Tuesday that it will further expand the opening of its capital market toward Taiwan.

The detailed policies include a pilot project of Renminbi Qualified Foreign Institutional Investor (RQFII) program, amendment of regulation policies of QFII and facilitating Taiwan financial institutions when applying for qualification of QFII in the mainland.

The policies were outlined by Tong Daochi, an official from the mainland's securities regulatory commission.

All the measures were reached at a meeting of the securities and futures regulatory bodies from the mainland and Taiwan on Tuesday.

After the meeting, Tong told a press conference that the shareholding ratio of Taiwan capital in mainland-based mainland-Taiwan joint venture fund management companies will be raised from the current no more than 49 percent to 50 percent and higher.

The mainland will also allow qualified mainland-Taiwan joint ventures to establish one full license securities company in Shanghai, Shenzhen and Fujian province, respectively, with the ceiling shareholding ratio for Taiwan capital at 51 percent.

In addition, the mainland will allow joint ventures to set full license securities in other reform pilot field cities, with a ceiling shareholding ratio for Taiwan capital at 49 percent, Tong added.

The official also announced other detailed measures for further opening to Taiwan's securities investment consulting and futures firms.