China is studying setting up a cross-border stock trading link between the mainland and Taiwan, local media on the island said yesterday.
The China Securities Regulatory Commission is studying a cross-Straits trading link between the Shanghai and Taipei stock exchanges, Taiwan-based Economic Daily News said yesterday, citing Jiang Yang, vice chairman of the CSRC.
The project is similar to a link between the Shanghai and Hong Kong bourses, which has seen a net capital flow of 199 billion yuan (US$32 billion) since its opening last November. A connection between Shenzhen and Hong Kong is likely to start by the end of this year, the CSRC said earlier.
Separately, Jiang said the mainland will further widen the access of its capital market to Taiwan investors to boost cross-Straits economic and trade cooperation.
"A sound communication mechanism has been built between the mainland and Taiwan's securities fields since the Shanghai Stock Exchange and its counterpart in Taiwan signed a memorandum of understanding last August," he told a financial summit in Taipei yesterday.
By the end of March, 30 Taiwan financial institutions had obtained approval from the mainland regulator to invest in the mainland securities market under the Qualified Foreign Institutional Investor program.
Jiang said the Chinese mainland will allow Taiwan investors to invest in the mainland market using yuan under the Renminbi Qualified Foreign Institutional Investor program.
