The Taiwan Monthly

Trading Policies

Enhancing Capital Flexibility: FINIs Allowed to Create Pledges over Taiwan Stocks for Offshore Investment Activities

To enhance Taiwan’s capital market competitiveness and attract international capital, the Taiwan Stock Exchange (TWSE), with approval from the Financial Supervisory Commission (FSC), has amended the Operating Rules on the Use of Domestic Securities by Overseas Chinese and Foreign Nationals as Collaterals for Offshore Investment Activities. The amendment took effect on March 30, 2026.

Under the existing framework, offshore foreign institutional investors (FINIs) may use Taiwan listed stocks as collateral for offshore investment activities. Building on this mechanism, the latest amendment provides greater flexibility by allowing FINIs to choose between a general collateral arrangement (without pledge) and a pledged collateral arrangement.

This amendment gives foreign investors more flexibility in financing operations while bringing Taiwan’s regulatory framework further in line with international market practice.