TAIPEI, March 12 (Reuters) - Taiwan’s will launch an exchange-traded fund platform for investors to trade in mainland China stocks this year, the chairman of Taiwan’s Financial Supervisory Commission said in a statement to lawmakers Wednesday.
The proposed ETFs would allow Taiwan fund managers to invest in Chinese stocks under the mainland’s RQFII program, or the renminbi-qualified foreign institutional investor scheme, which permits overseas investors to use renminbi deposits at financial institutions to invest in Chinese securities.
The president of Taiwan’s Stock Exchange had previously told Reuters he expected the ETFs would be launched in the first half of 2014.
The passage of the ETFs is largely contingent on the passage of a trade-services pact between Taiwan and Mainland China, which has been held up in Taiwan’s legislature on concerns over its impact on local industry. (Reporting by Emily Chan; Writing by Michael Gold; Editing by Kim Coghill)