By Ted Chen / Staff reporterThe Financial Supervisory Commission (FSC) yesterday downplayed the ramifications of Hon Hai Precision Industry Co’s (鴻海精密) decision to list a subsidiary on the Shanghai Stock Exchange and its speedy approval by Chinese regulators. The China Securities Regulatory Commission on Sunday announced that it would begin reviewing the listing application of the subsidiary, Foxconn Industrial Internet Co (FII, 富士康工業互聯網). However, the Chinese commission yesterday approved the application — less than 60 days after Hon Hai Precision’s shareholders in January gave the green light to the listing plan. Under tight capital controls imposed by Beijing, Taiwanese subsidiaries based in China can reduce the strain on their parent companies by seeking funding from the Chinese capital market, the FSC said. While the Chinese market is significantly larger and has more attractive price-to-earnings valuation, Taiwan’s market offers more transparency and lenient capital controls, it said.

Source: Taipei Times March 08, 2018 16:04 UTC