Taipei,Sept.7,2012--The Financial Supervisory Commission(FSC)and the China Banking Regulatory Commission(CBRC)will sign memorandum of cooperation for"offshore discretionary-account wealth-management operation,"allowing China's banking QDII(qualified domestic institutional investors)to invest in Taiwan's stock market and Taiwanese banks investing discretionary-account wealth-management funds in China's stock market.
Meanwhile,FSC will also urge mainland China relaxing qualifications for QFII(qualified foreign institutional investors),permitting Taiwanese banks to obtain QFII status and help local people invest in the Chinese stock market via collective management accounts and specific money trusts.
The Executive Yuan(the Cabinet)has approved the plan for cross-Taiwan Strait characteristic financial businesses,according to which the government will push banking discretionary-account offshore wealth-management business.
An FSC official pointed out that in the past,no Taiwanese banks can obtain China's QFII status,due to their insufficient assets.Recently,China relaxed the qualifications for QFII and there are seven to eight Taiwanese banks capable of meeting the qualifications.FSC hoped to have China further relax the qualifications for QFII for Taiwanese banks and allow qualified banks to invest in China's stock market.
FSC presently regulates that collective management accounts of banks and mutual funds can both invest in China's stock market.In practice,no collective management account has invested in the Chinese market,since domestic banks have yet to obtain QFII status.FSC has also planned to open up local people investing in the Chinese stock market via specific money trust and co-consignment of securities firms.
