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This article discusses how the financial markets of Taiwan have seen a flurry of regulatory reforms, a process that is set to continue through year 2000. When completed, this reform process will have transformed Taiwan from a closed and restrictive market to one of the most dynamic financial centers in Asia. Within the space of a few years, commercial banking, bills financing and property insurance have been opened to full-pledged competition, and the ongoing privatization of the remaining government-owned institutions should increase competition in the financial industry in the coming years. The equity market has also seen profound changes with the establishment of an active OTC active, a doubling of the number of listed companies and the gradual opening of the local market to foreign institutional and individual investors, a process that will culminate with the removal of all limits on foreign portfolio investment by year 2000.

This article focuses on the performance of the Taiwanese stockmarket, as of September 1997. Catapulted through the 7,000-point barrier on both the words of Lu Yung-ying, chairman of the Securities and Exchange Commission and a tide of bullish news, Taiwan's market has sored to new heights to become the world's seventh best performing stockmarket this year. The fundamentals including a favorable economic environment, a supportive government and ample liquidity were already in place before the chairman's catalytic words and have continued to support the market throughout this first half. It has been the favorable macroeconomic back-drop which has allowed the government to be so supportive. A fragile economy, which has allowed the government to pursue a loose monetary policy, has ensured ample liquidity during the first half of the year.

Import prices for containerised HMS-grade ferrous scrap went as high as $270 per tonne cfr in Taiwan this week, as local buyers continued to compete for the steelmaking raw material, sources said. [ABSTRACT FROM AUTHOR]

This article reports that effective July 7, 1995, the Central Bank permitted banks in Taiwan to deal in non-delivery foreign exchange forward transactions to give additional leverage to banks and companies for better protection against possible foreign exchange trading risks. In order to reduce the pressure from trade surpluses on the domestic money supply and on the value of the Taiwanese dollar, and to minimize the inevitable intervention of foreign exchange control, the authorities relaxed most of the rulings on foreign exchange control in July 1987. This relaxation was an important turning point in the promotion of international trade and overseas investment of this country. Under the new system, current account transactions have been completely liberalized.

Daniel Lee of Jingtian & Gongcheng provides a comprehensive overview of all you need to know about Taiwan's regulatory regime, from M&A, antitrust and dispute resolution to compliance, IP and the labour environment [ABSTRACT FROM AUTHOR]

Carlyle finds a way to close buyouts [ABSTRACT FROM AUTHOR]

Make up your mind [ABSTRACT FROM AUTHOR]

This article focuses on the Taiwan dollar, the local currency of Taiwan, that is is being used as of September 1997. The currency has been considered stable in value in recent years compared with many other currencies. Several important factors may influence the exchange rate of the local currency; among these are the international value of the U.S. dollar in relation to other currencies, the interest rate differentials between the domestic and foreign markets, the obvious trend of the Taiwanese dollar, trade balances, outward investments, inflows of foreign and overseas Chinese investments, travel expenditures, short-term capital movements, and the attitude and intervention policies of the monetary authorities. In addition, political concerns such as changes in the nature of cross strait relations between the country and China should be taken into account when considering the short-term fluctuation of the dollar.