One More Reason Why Taiwan Outpaces Mainland

September 27, 2006 at 11:07 pm (China, Economics, Finance)

The Wall Street Journal reported that Taiwan is Seeking to lure more foreign funds to its stock and bond markets. This news comes in sharp contrast with mainland China’s new policy on banning foreign firms to acquire domestic stockbrokers. (Also please refer to this post).

This is just one more reason why Taiwan’s economy outpaced mainland’s.

 

From the Wall Street Journal

Taiwan’s cabinet approved a three-year plan to make the island’s stock and bond markets more attractive to foreign investors, allowing the sale of government stakes in some financial institutions and planning a review of taxes on financial products.

Among the project’s eight goals are a reduction in government holdings of financial assets and an increase in foreign and institutional ownership of local companies. Cabinet spokesman Cheng Wen-tsang said the plan doesn’t require legislative approval.

The government hopes to raise the value of financial services as a percentage of gross domestic product to 11.29% by 2009 from 10.86% this year, said Vincent Tsai, a section chief at the Financial Supervisory Commission.

The cabinet said the government will dispose of its stakes in second-tier financial institutions and will continue to lower its holdings of financial assets. It didn’t identify the institutions or provide other details. It owns between 50% and 60% of the island’s financial sector. (more)

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