Taiwan Opens Market To Direct Investment By Foreign Insurers
TAIPEI, Taiwan -- The cabinet decided to allow foreign insurance companies that have branch offices here to invest directly in the stock market.</br></br>The move came in response to a U.S. request to open up more of the local financial market to foreigners, officials said.</br></br>Under the new regulations, the nine foreign insurance companies currently operating here would be treated the same as local companies.</br></br>Until now, Taiwan allowed foreigners to invest in its securities market only by buying mutual funds issued by four local securities investment trust companies. Foreign insurance companies were limited to buying government bonds and treasury bills, making commercial loans and depositing funds in banks.</br></br>The new rules allow foreign insurance companies to invest as much as 35% of their capital and reserves directly in stocks and corporate bonds.