Taiwan Delays Plans in Allowing Mainland Companies in Listing Stocks
Taiwan is delaying their plans in allowing several mainland companies in raising funds by listing their stocks or by issuing bonds until 2015. Sources said that the banking ties between mainland and Taiwan is slowly picking up ever since the yuan currency clearing deal was approved earlier.
Although the financial supervisory authority of Taiwan has postponed the plan abruptly last week t launch the I Shares that were issued by companies of at least 30 percent that are owned by mainland firms because of the complexity that involves bilateral regulations and the collection of tax. Financial analysts say that the country has been taking a cautious approach in allowing several mainland companies in raising money in Taiwan. Teams that are assigned to discuss the deals have still to meet next week.
Both teams are still considering whether mainland regulators will allow Taiwan regulators to look into financial reports from the mainland and if these financial reports are transparent enough to meet standards. To further iron out the difference among topics must be discussed during the annual second meeting between the financial supervisory authority of Taiwan and China’s Securities Regulatory Commission of mainland.