Mainland investors now allowed to invest in 100 sectors in Taiwan

Jul. 2, 2009 (China Knowledge) - Taiwan on Tuesday issued new rules to allow mainland investors to invest in 100 sectors on the island, as the local government aims to make the stock market one of the world's top performers, Reuters reported.

The new rules will allow investors from the Chinese mainland to invest in areas that include car-manufacturing, resort hotels and commercial ports. However, the semiconductor, flat panel display, solar panel and communications sectors are not among the 100 approved categories.

Officials said mainland investors can buy up to 10% of a listed company's total share value.

The local government will may expand the scope for investment after seeing the initial results, said Deng Cheng-chung, Taiwan's deputy economics chief.

China Mobile Ltd<0941><CHL>, the country's largest telecom operator, earlier said it plans to buy a 12% stake in Taiwan's Far EasTone Telecommunicaitons Co (FET). However, since the telecom sector is not an industry on the approved list, China Mobile will not be allowed to invest in the island's third-largest telecom operator.