The Financial Supervisory Commission of Taiwan is considering amending the present investment regulations to allow insurers to invest in yuan-denominated securities and bonds issued in Hong Kong, a further sign of improving cross-straits ties.

Taiwan insurers are currently permitted to invest up to 45% of total insurance funds overseas, of which 10% may be invested in Chinese assets. Under the proposed new rules, insurers may invest that 10% quota in Hong Kong listed yuan stocks and exchange-traded funds issued by companies that make up the Hang Seng China Enterprises Index. The regulator is now consulting the public on this proposal.

(Source: Bloomberg)