Ta Yang Group, a Hong Kong-listed manufacturer of silicon rubber keypads for handsets, plans a second listing in Taiwan next year to take advantage of an expected loosening of fund-raising rules for mainland-based technology firms. Chief financial officer Kirk Yang said the company's shares were trading at 7.5 times last year's earnings in Hong Kong while its peers enjoyed a price-earnings ratio of 15 to 20 times in Taiwan. 'Hong Kong investors are more familiar with banking and property stocks while Taiwan investors have a deeper understanding of technology stocks,' Mr Yang said. Under Taiwan regulations, any local firm that plans to raise funds on the stock market cannot have overseas investments exceeding 40 per cent of its asset value. The regulation is largely seen as a political measure to prevent Taiwanese capital draining into the mainland. Many Taiwanese technology firms, including Foxconn International Holdings and Hannstar Board International Holdings, have therefore chosen to raise funds in Hong Kong to support their mainland operations. But with the election of Beijing-friendly Ma Ying-jeou as president of Taiwan earlier this year, many observers said they expected the restrictions would be loosened, allowing more mainland-based companies to list on the island. Ta Yang, the world's largest silicon input device maker by volume, in June last year raised HK$700 million from the sale of 200 million new shares in Hong Kong to fund production capacity expansion. The shares closed 0.66 per cent lower at HK$1.51 yesterday against a 2.37 per cent drop in the Hang Seng Index. The stock is still well below its offer price of HK$3.50. Last month, the firm said its net profit rose 16.7 per cent to HK$79.8 million in the nine months to January while sales increased 39 per cent to HK$397.7 million. Gross margins fell from 36 per cent to 33 per cent due to rising labour and raw materials costs. In order to cut labour costs, the company plans to move its production lines from Dongguan to Huizhou, where minimum wages are lower.