No Chinese money allowed in Taipei 101 shares sale

No Chinese money allowed in Taipei 101 shares sale

TAIPEI - The Ministry of Economic Affairs (MOEA) said yesterday that the sale of shares in the firm that runs the Taipei 101 building will be under strict investigation to determine if the proposal is legal, adding that mainland Chinese investments are not allowed in this case or in any other future purchases of Taipei 101 shares.

The ministry's comment came one day after the Ting Hsin International Group announced its intention to sell its entire equity in Taipei 101 to Malaysian company IOI Corporation Berhad.

In light of the mass boycott of Ting Hsin products and considering the Wei family's promise to donate NT$3 billion to create a so-called Food Safety Fund to take responsibility for the recent food scandal, the group recently stated that it is hoping to sell its shares in the Taipei 101 building to Malaysian company IOI Corporation Berhad.

An official for MOEA's Investment Commission stated that an embargo was imposed to prevent Chinese investments into real estate, as the market has yet to open to China.

To finalize the transaction between Ting Hsin and IOI, the former must submit paperwork for review while the latter must be cleared of Chinese financial influence. Even if the funds were to come from IOI's founder Lee Shin Cheng, the Ministry of Foreign Affairs and National Security Bureau will conduct strict investigations to prevent Chinese investments into Taiwanese real estate.

The official also said that review of the proposal will probably take place for one or two months. Only following all investigations of the documents and various aspects of the transaction will the case be brought to the attention of the MOEA, the Ministry of Finance, the Financial Supervisory Commission and the Central Bank of the Republic of China  for approval.

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