In Taiwan, the Securities and Futures Commission (SFC) has approved the registration applications of two foreign hedge funds, which can now trade in the local markets.
A Citibank official in Taipei explains that, when registering with the Taiwan Securities Exchange (TSE), so-called Foreign Institutional Investors (FINIs) are required to specify whether their investments are long only or for hedge fund purposes.
Hedge funds are required to submit additional documentation, including their Articles or Memorandum of Incorporation, and an explanation of their trading strategies. “SFC’s more open attitude toward foreign hedge funds is expected to further open up Taiwan capital market,” says the Citibank official.