Only Two Securities Houses Accept Invitation Many Had Sought to Enter Taiwan's Markets
HONG KONG -- After years of gradually increased pressure from foreign brokerage houses, Taiwan in June invited a few of the world's biggest securities companies to compete for the chance to participate in its booming local financial markets.</br></br>The invitation list was so exclusive that the three spots open to foreigners were limited to the top seven U.S. and top four Japanese securities companies.</br></br>When the application period ended this week, only two companies had applied: Merrill Lynch & Co. and Shearson Lehman Hutton Inc.</br></br>None of the "Big Four" Japanese securities companies applied because Japanese government officials made it clear that they didn't want to risk further damage to their relationship with Taiwan's archenemy, China, company executives say.</br></br>About 10 U.S. and European securities companies, including Merrill Lynch and Shearson, already have advisory offices in Taiwan, although no foreigners are currently allowed to participate in the stock market. The other U.S. firms invited by Taiwan weren't prepared to immediately make the kind of commitment the Taiwanese government wanted, according to brokers in Taipei.