Taiwan's cabinet recently eased restrictions on local fund managers investing in mainland Chinese securities and companies listed on the Hong Kong and Macau exchanges. The amended rules allow Taiwanese securities firms and mutual fund companies to increase their investments in mainland shares to a value of 10 percent of their total assets, up from 0.4 percent. The regulation stating that firms may only invest 10 percent of their total net assets in red chips and H shares traded in Hong Kong and Macau will be removed entirely. Government Information Office Minister Vanessa Yea-ping Shih said the restrictions had been made to allow local securities firms to expand their operations in China, Hong Kong and Macau.
