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China mulls easing rules for Taiwan financial investment

[BEIJING] China is studying plans to make it easier for firms in Taiwan to invest in its finiancial markets, including bond futures, under the Qualified Foreign Institutional Investor (QFII) scheme, the Xinhua news agency reported on Friday.

China may also allow Taiwan financial institutions to advise mainland investors under the Qualified Domestic Institutional Investor (QDII) programme, it said, citing Chinese securities market regulators.

Taiwan may also relax restrictions on China's QDII investment and ease limits on investment by mainland Chinese futures companies in their counterparts in Taiwan, Xinhua said.

Financial ties across the Taiwan Strait have gathered steam, with both sides signing a yuan clearing agreement and allowing banks to invest in each other in the past couple of years.

The QDII scheme is a quota system for allowing Chinese investors to buy overseas financial assets. The QFII scheme is the main channel for foreign investment in China's stock markets.