Taiwan MAC proposes capital flow mechanism on China investment: report

TAIPEI (AFX-ASIA) - The Mainland Affairs Council has proposed to the cabinet varying measures on China investment amid the government's review of the "no haste, be patient" policy towards Beijing, the Commercial Times reported.	    The MAC proposed that domestic banks' offshore business units (OBUs) be allowed to have direct business links with China banks' OBUs and foreign banks' mainland offices.	    It was also proposed that Taiwan OBUs be able to take deposits from China's offshore institutions and individuals, it reported.    However, Taiwan-listed companies that have investments on the mainland will be asked to pay a cash dividend.	    Additionally, under the MAC's proposals, the scale of a company's investment in China will affect the ceiling on the letters of credit they can secure from banks, it reported.	    The MAC also proposed a system to strengthen risk management on China investment, it added. 

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