RQFII un­likely to pro­ceed with­out ser­vices pact: FSC

The China Post - - TAIWAN BUSINESS - BY ENRU LIN

The Fi­nan­cial Su­per­vi­sory Com­mis­sion (FSC, ) said chances are low that it can rene­go­ti­ate terms of a cross-strait yuan in­vest­ment scheme so that the pro­gram can pro­ceed in­de­pen­dently from the stalled Cross- Strait Ser­vice Trade Agree­ment ( ).

“De­cou­pling the Ren­minbi Qual­i­fied For­eign In­sti­tu­tional In­vestor (RQFII) from the CrossStrait Ser­vice Trade Agree­ment would be a dif­fi­cult task,” FSC Chair­man Wil­liam Tseng ( ) said yesterday. Tseng re­it­er­ated yesterday that an an­nual cross-strait meet­ing of fi­nan­cial reg­u­la­tors will pro­ceed as usual this year, de­spite an im­passe in the Leg­is­la­ture over the CrossStrait Ser­vice Trade Agree­ment.

The fi­nan­cial reg­u­la­tors’ sum­mit will open in Taipei as early as the third quar­ter and no later than the fourth, Tseng said yesterday at a fi­nan­cial in­dus­try fo­rum.

The China Se­cu­rity Reg­u­la­tory Com­mis­sion ( ), China Bank­ing Reg­u­la­tory Com­mis­sion ( ) and the China In­sur­ance Reg­u­la­tory Com­mis­sion ( ) will each send a del­e­ga­tion to Taipei, he said.

The sum­mit dates and is­sues on the agenda are still un­der study, Tseng said, adding that talks are un­likely to re­sult in an early green light for the RQFII pro­gram.

Stalled Scheme

As part of the Cross-Strait Ser­vice Trade Agree­ment signed in 2013, the Chi­nese gov­ern­ment had agreed to let qual­i­fied Tai­wanese in­vestors repa­tri­ate yuan through its fi­nan­cial mar­kets.

The ser­vices pact, which trig­gered a 24-day stu­dent demon­stra­tion, has not been rat­i­fied and has also de­layed the im­ple­men­ta­tion of the RQFII pro­gram. The pact has not yet seen leg­isla­tive re­view and its fate re­mains un­cer­tain.

China has of­fered about 770 bil­lion yuan in global RQFII quo­tas; Aus­tralia, France, Sin­ga­pore and Hong Kong al­ready have quo­tas.

Ini­tial re­ports state that China is con­sid­er­ing a 100 bil­lion yuan quota for Tai­wan, the largest amount al­lo­cated to any econ­omy out­side of Hong Kong, which has a quota of 270 bil­lion yuan.

Ahead of the an­nual sum­mit of cross-strait fi­nan­cial reg­u­la­tors, mem­bers of Tai­wan’s fi­nan­cial in­dus­try said they hope that the FSC can rene­go­ti­ate terms of the yuan in­vest­ment scheme and open up the 100 bil­lion yuan op­por­tu­nity ahead of the stalled pact.

On Mon­day, the FSC chair­man had said that “when there is a meet­ing, there is an op­por­tu­nity for a break­through.” It is par­tic­u­larly mean­ing­ful that the an­nual cross-strait fi­nan­cial talk is con­tin­u­ing as usual, he said.

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