Taiwan to let China firms list stocks, sell yuan bonds in 2015-sources
TAIPEI Dec 20 (Reuters) - Taiwan is delaying a plan to allow Chinese companies to raise funds by listing stocks or issuing yuan bonds until 2015 at the earliest, two government sources told Reuters, underscoring the hurdles in bolstering cross-strait financial ties.
Banking ties between Taiwan and China have steadily picked up since a yuan currency clearing deal was inked early this year.
But Taiwan's Financial Supervisory Commission suddenly postponed a plan this week to launch "T shares", or shares issued by companies at least 30 percent owned by Chinese firms, due to the complexity involved in bilateral regulations and tax collection.
"We'll being taking a very cautious approach when allowing Chinese companies to raise money in Taiwan," one of the sources with direct knowledge of the matter told Reuters on Friday. "Task teams from both sides have not even started to meet yet."
"Any such stock listings or bond issues by Chinese firms (not including banks) will not materialise this year or next," the first source said.
Both sources said they needed to consider whether Chinese regulators would let Taiwan regulators look at Chinese firms' financial reports and whether the financial reports were transparent enough to meet their standards.
How to iron out differences will be among the topics to be discussed at a second annual meeting between the FSC and the China Securities Regulatory Commission in the second half of next year, said the first source.
Four major mainland banks, including Bank of Communications , have issued yuan bonds in Taiwan. But Chinese companies, excluding banks, have not been allowed to do so.
($1 = 6.0712 Chinese yuan) (Editing by Chris Gallagher)
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