Taiwan Eliminates Foreign Ownership Limitations

Washington, DC, January 9, 2001 - The percentage limitations on foreign ownership of most Taiwanese securities have been eliminated, effective December 30, 2000. Previously, foreign investors were prohibited from owning more than 50 percent of a Taiwanese company's total issued and outstanding shares, either individually or in the aggregate with other foreign investors.

It is unclear how the elimination of the percentage ownership limits impacts the quota system Taiwan has imposed on foreign investment. Pursuant to that quota, the maximum amount a qualified foreign institutional investor (QFII), aggregating all of its accounts, could invest in Taiwan is US$600 million. If certain investment criteria are met, a QFII may apply for an increase to this limit each year.