Foreign investment opened for purchase/sale of financial asset securitized products

The Securities and Futures Commission (“SFC”) decided on Dec 13 to open foreign investment of financial asset securitized products in hopes of enlisting foreign investment’s help to strengthen the domestic market of financial asset and to urge circulation of financial products.  Currently, there are six asset securitized products, worth of about US$700,000,000, and such transactions are expected to be concluded in the first half of Year 2003.

The officials of SFC indicated that the scope of investment for Qualified Foreign Investment Institutions, overseas Chinese and foreign nationals will include beneficial certificates publicly enlisted by trustee institutes, asset-based securities publicly enlisted by companies of special purposes, beneficial certificates and asset-based securities privately enlisted in accordance with the Regulations for Securitization of Financial Asset.