Access to Taiwan's securities markets by foreign institutional investors has also been broadened. Taiwan has a complicated regulatory system governing portfolio investment. In March 1996, portfolio investment was opened to individual foreign investors and foreign companies other than QFIIs. Since March 1996, QFII capital flows have not been subject to restrictions. These restrictions are also expected to be lifted in January.
Market woes Taiwan's stock exchange has become a major economic concern.
Shortly after President Chen Shui-bian took office in March, the Taiex reached a high of 9,115, only to start a long decline to under the present 5,400. On October 3, events reached a crisis stage when Premier Tang Fei announced his resignation. Although the official reason given was ill health, it is widely believed that he resigned due to disagreements with President Chen over a fourth nuclear plant. Chen said he would halt construction of the plant. Tang's resignation resulted in a cabinet reshuffle and political uncertainty.