Chinese mainland respects Taiwan-funded companies to independently choose their listing place: Taiwan Affairs Office of State Council

The Chinese mainland respects Taiwan-funded companies to independently choose their listing place, Zhu Fenglian, spokesperson from the Taiwan Affairs Office of the State Council told a press conference on Wednesday.

Zhu made the remarks in response to a question about the impact of a 35-point rule for overseas listings of Chinese firms issued by China Securities Regulatory Commission (CSRC) on Taiwan-funded enterprises in the mainland.

According to the CSRC, the rules, effective from March 31, stressed an improvement in the supervision mechanism and requested that domestic companies seeking overseas direct or indirect listings fulfill their due filing and information reporting obligations.

Zhu said that the rules adhere to market-oriented principles and legal requirements, creating a more transparent and predictable business environment for Chinese enterprises to list overseas. The relevant standards apply to all domestic enterprises, including Taiwan-funded enterprises whose main business activities are in the mainland.

The spokesperson noted that the overseas listing of domestic enterprises is an important part of the two-way opening of the mainland capital market, and is of positive significance in supporting enterprises to better integrate into global development.

“The mainland respects the independent choice of listing place by Taiwan-funded enterprises, and supports qualified Taiwan-funded companies to list abroad in compliance with relevant law, making use of the two markets and two resources to achieve standardized and healthy growth,” Zhu said.

Zhu also said that the mainland has always been the best choice for Taiwan enterprises to invest and set up their businesses, in response to remarks by some secessionist politicians in the island, alleging that business conditions of the mainland are not as good as before.

Zhu said that those politicians on the island are “habitual liars”. In fact, the mainland has long been the most popular destination for investment from Taiwan Island.

Data from the Ministry of Commerce showed that from 2012 to 2022, the total number of Taiwan business investment projects in the mainland has increased from 88,000 to 129,700, with the cumulative actual use of Taiwan capital rising from $57.05 billion to $72 billion. And, 60 Taiwan enterprises have been listed in mainland capital market.

“The vast number of Taiwan compatriots, businessmen and enterprises have actively participated in cross-Straits economic cooperation and integrated development, achieving better development owing to huge opportunities of the mainland,” the spokesperson noted.

In the future, as the mainland accelerates the construction of a new development pattern and promotes high-quality development, there are more opportunities, more space and better prospects for Taiwan compatriots and enterprises to develop in the mainland. “We will continue to improve the system and policies to protect the well-being of Taiwan compatriots and enterprises. The mainland was, is, and will remain the best choice for Taiwan enterprises to invest,” Zhu said.