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Financial institutions look for fewer cross-Straits restrictions

(Xinhua)
Updated: 2010-03-09 17:42

TAIPEI/BEIJING - Taiwan's security firms and banks are arguing for fewer restrictions on cross-Straits financial business as the island's authorities prepare to release three new rules in the coming week.

Since November last year, financial companies have performed poorly on the island's stock market, said Wang Shih-cheng, manager of qualified domestic institutional investors (QDIIs) of Jih Sun Securities Co Ltd, in an interview with Xinhua.

"If the authorities do not speed up the opening of the market to the mainland investors, share prices of financial firms will continue dropping."

The industry had expected a lot from the three memorandum of understanding of banking, insurance and securities, signed in November, he said.

"But the agreements did not fulfill our expectations, for instance, of free investment in stock markets on both sides of the Taiwan Strait, thanks to the restrictions adopted by the authorities."

Taiwan's financial department placed a ceiling on total investment from the mainland's QDIIs at $500 million and banned them from investing in several key industries such as infrastructure, airlines and telecommunications.

Two mainland QDIIs have entered the Taiwan market since the three memorandum of understanding took effect in January.