TAIWAN COULD RELAX MAINLAND CHINA INVESTMENT RESTRICTIONS

The Taiwanese government is considering a relaxation in the rules that currently make it hard for Taiwanese insurers to enter the Chinese mainland. President Chen Shui-ban said at a conference on the Taiwanese insurance industry. Mr Chen said that the government is might allow local insurers to invest in the Chinese market by buying a maximum 25% stake in insurance companies there. Following his speech, locally based Taiwan Life said that it planned to take a 5% to 8% stake in China’s Eastern Life at a cost of about NT$160m to NT$256m, if it was permitted to do so. Non-mainland Chinese players can take a 50% stake in insurance joint ventures in China if they meet a minimum asset requirement of US$5bn, but only Cathay Life, Shin Kong Life and Fubon are qualified amongst Taiwanese insurers. China sets a 10% ceiling for straight foreign investment.