TAIPEI, July 21 (Reuters) - Taiwan’s stock market regulator is studying a plan to ease rules to make it easier for China’s qualified domestic institutional investors (QDII) to invest in local mutual funds, an official said on Monday, in the latest sign of warming financial ties across the Taiwan Strait.
The proposal would put aside investment quotas for QDIIs in Taiwan’s mutual funds, said an official of the Securities and Futures Bureau. The official declined to be identified as the matter is yet to be made public.
Currently, Taiwan has a limit of $500 million for QDIIs to invest in local stocks and mutual funds, among others, combined.
Taiwan allowed its banks to conduct business in the yuan in 2013, a major step in bringing financial ties closer since President Ma Ying-jeou took office in 2008.
“We hope the more investments into the mutual fund industry, the better,” said the official, adding no other details were available. “People in the industry have expressed a lot of interest to see more of China’s QDIIs in the market.”
Taiwan’s Economic Daily reported on Monday that China’s QDIIs had more than $80 billion for investments as of end-June.
Reporting by Faith Hung; Editing by Kim Coghill