Taiwan to allow foreign investors to use local shares

Taiwan will soon allow foreign institutional investors to use local equities as collateral for their overseas investments. Securities and Futures Bureau Chief Secretary Hwang How-ming said the change would apply only to foreign securities companies or banks designated as foreign institutional investors. He said the Taiwan Stock Exchange (TWSE) and Taiwan Depository and Clearing Corp. have yet to finalise details, such as how much money investors can borrow by using local shares as collateral. The deregulation would take effect by the end of this year. Hwang said that foreign institutional investors have proposed such a deregulation in the American Chamber of Commerce in Taiwan’s 2022 Taiwan White Paper.