Taipei, April 21 (CNA) Taiwan's Financial Supervisory Commission (FSC) said Tuesday that publicly-traded companies will be able to distribute cash dividends in foreign currencies as early as next year, in a move aimed at creating a more investor-friendly environment.
Given that foreign investors hold up to 46.93 percent of the total market value of Taiwan's stock market, the measure would help reduce currency exchange costs for both the investors and securities custodians, said Huang Chung-hao (黃仲豪), deputy head of the FSC's Securities and Futures Bureau, at a regular press conference.
Huang said the measure was intended to align local regulations with international practices.
Its announcement came after Taiwan's stock market recently overtook the United Kingdom to become the world's seventh-largest by total market capitalization.
If system adjustments proceed smoothly, starting next year, companies listed on the Taiwan Stock Exchange (TWSE), the Taipei Exchange (TPEx), and the emerging stock market, where shares of companies that have completed a public offering but have not yet been listed on the TWSE or TPEx are traded, would be able to distribute cash dividends in foreign currencies upon request, the FSC said.
The arrangement applies only to foreign shareholders, it said.
