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P.M. BRIEFING : Taiwan OKs Wider Stock Market

From Times Wire Services

The Cabinet approved a long-awaited bill that will open the island’s volatile stock market to foreign institutional investors, a government spokesman said today.

The announcement, the second phase of a cautious plan to fully internationalize the stock market, caps a roller-coaster year in which Taiwan’s once-dazzling exchange became one of the poorest performers in Asia.

Acting government spokesman Liao Cheng-hao declined to give a specific date for implementing the bill.

Under the plan, foreign institutional investors--defined as insurance companies, banks and fund managers--may apply to the Securities and Exchange Commission to trade Taiwan stocks, corporate and government bonds and mutual funds.

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Foreigners can now participate in the Taiwan stock market only through four funds listed in New York and London.


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