Chinese investors can buy and sell stocks from Jan. 16 in Taiwan, a historical rival of China that has only recently begun opening economic links to the economic powerhouse, local media said on Saturday.
Qualified domestic institutional investors (QDII) from China will be allowed to trade Taiwan shares following a recent memorandum of understanding between the two sides, Taiwan's Commercial Times newspaper reported.
Taiwan authorities are likely to set limits on how much Chinese firms can invest in certain sectors, the paper said.
Taiwan Financial Supervisory Commission chairman Sean Chen said China's qualified investors could put up to 10% of their assets in Taiwan's stock market, the island's semi-official Central News Agency said.
With a 10% limit, Chinese QDIIs could invest up to T$30 billion ($930 million) in Taiwan stocks, the agency said.
China-Taiwan trade relations have thawed over the past 18 months following a decades-long freeze due to political tensions.
Since China-friendly Taiwan president Ma Ying-jeou took office in mid-2008, the two sides have also signed deals promoting tourism and facilitating trade.
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