Hong Kong's Global Financial Centre and China's Development by Yan-leung Cheung Yuk-shing Cheng Chi-keung Woo

Author:Yan-leung Cheung, Yuk-shing Cheng, Chi-keung Woo [Yan-leung Cheung, Yuk-shing Cheng, Chi-keung Woo]
Language: eng
Format: epub
Tags: Social Science, Ethnic Studies, General, Regional Studies
ISBN: 9781317284765
Google: FWeuDQAAQBAJ
Barnesnoble:
Goodreads: 30409718
Publisher: Routledge
Published: 2016-12-02T00:00:00+00:00

5.3.2 Tourism-driven RMB business in Taiwan

The RMB business in Taiwan started as early as in 2008, after the signing by both sides of the “Cross-Strait Agreement Concerning Mainland Tourists Traveling to Taiwan”. This agreement allowed residents in Mainland China to visit Taiwan as tourists. To facilitate Mainland tourists’ cash demand for New Taiwan Dollars, Taiwan approved on 30 June 2008 the proposal of “Initiation of RMB Cash Conversion Services in Taiwan”, thus allowing financial institutions and money exchangers on the island to provide RMB conversion services.23

Apart from RMB conversion services, other financial liberalization policies approved at about the same time included: introduction of exchange-traded funds (ETFs) that can cross-list in both Hong Kong and Taiwan; limited opportunities for Hong Kong Exchange-listed companies to have a secondary listing in Taiwan; loosening restrictions regarding local investment funds’ handling of Mainland stocks; and facilitating Taiwan institutions’ investment in the Mainland Chinese securities and futures (Liu, 2011). Moreover, Taiwan canceled the restriction that an investor bringing foreign capital into Taiwan must first produce a statement certifying that the money did not originate from the Mainland. Hence, the Mainland’s Qualified Domestic Institutional Investors (QDII) could thereafter invest indirectly in the Taiwan market.

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