Taipei, Nov 4: Hong Kong's fledgling second stock market could offer Taiwan firms an end run around restrictions on funds flows to subsidiaries in communist China, the island's diplomatic rival -- and favourite investment site. Taiwan's securities rules contain complex limitations that permit companies to route only a sliver of funds raised in the island's equities markets to their mainland operations.But a listing on Hong Kong's soon-to-be-launched Growth Enterprise Market, nicknamed GEM and targetting small-capitalisation firms, could skirt these barriers and help firms funnel money to manufacturing operations in China.
Taipei and Beijing have been locked in a tense political stand-off since the Nationalist Republic of China was defeated by Chinese Communist forces in 1949 and fled to Taiwan.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.