BEIJING is considering allowing Taiwanese firms operating on the mainland to issue shares on China's stock exchanges, a Taiwanese newspaper reports.
If the plan materialised, it would make Taiwanese businessmen more loyal to Beijing - by expanding their mainland operations - and disregard Taipei's curbs on investments in China, China Times Express said yesterday.
China's Ministry of Foreign Trade and Economic Co-operation had completed a survey on problems Taiwanese firms faced in doing business on the mainland.
It said many Taiwanese firms complained of a lack of financing channels and support from banks and other financial organisations on the mainland.
As a result, Beijing was considering allowing outstanding Taiwanese firms in five coastal provinces and two cities - Shenzhen and Xiamen - to issue A shares, which Chinese can buy.
The paper did not name the provinces, but most Taiwanese investments centre on Fujian, Guangdong, Jiangsu and Zhejiang as well as Shanghai, which has the same status as a province.
The plan being considered would mean Taiwanese firms could tap funds from China's huge and booming capital market without seeking funds from their parent companies on the island for which approval is becoming increasingly difficult to obtain.
