The Taiwan Financial Supervisory Commission’s (TFSC) decision to allow non-capital raising level one depository receipt (DR) programmes could open a door for wider foreign investment, according to a statement from BNY Mellon.
The change in legislation aims to create investor connectivity opportunities for Taiwanese companies in North America and around the world, making them more accessible to global investors.
It is hoped the changes will benefit companies by broadening shareholder base on a global scale, without the costs of listing on an overseas stock exchange.
Neil Atkinson, head of the Asia Pacific for BNY Mellon’s DR business, said: "We are often asked, particularly by US investors, to establish DR programmes for Taiwanese companies, but have been restricted from doing so by regulation."
He also suggested this is an indication of a growing economy in Taiwan.
“Research suggests there is growing demand from Taiwanese companies to be able to increase their international ownership, and global investor sentiment toward Taiwan is buoyant.”
“Accordingly, we may see more Taiwanese companies using DRs in 2015."
Despite the changes, qualified issuers that are listed on the Taiwan Stock Exchange and GreTai securities markets will not see increased reporting requirements when trading in US over-the-counter markets.
