The Ministry of the Interior issued the Tai-Nei-Di-1040404695 Circular of March 19, 2015 to amend the Volume and Implementation Manners in the Total Volume Control for Real Estate Ownership in Taiwan as Obtained by People from the Mainland China Area (hereinafter, the "Circular"), which will go into effect on July 1, 2015.

If mainland Chinese investors seek to purchase real estate in Taiwan, they have to obtain the approval of the Ministry of the Interior pursuant to Article 69, Paragraph 1 of the Statute for Relations Between the Citizens of the Taiwan and Mainland China Areas. To prevent mainland Chinese investors from real estate speculation in Taiwan, a total volume control measure was adopted via the Tai-Nei-Di-1020351411 Circular of November 26, 2013 from the Ministry of the Interior to impose the following limitation. Up to 13 hectares of lands and 400 housing units may be obtained by natural persons from mainland China every year, and unused quota will not be retained, while long-term total volume control pertains to 1300 hectares of lands and 20,000 housing units.

However, in view of special cross-strait relations, this Circular was issued to amend the above circular to prevent over concentration of applications from raising social misgivings by additionally imposing a 10% cap on the total housing units in a collective residential complex in Taiwan which may be obtained by people in mainland China. If the number of the total housing units is less than 10, one housing unit will be permitted. To protect the interest of the citizens who have invested considerable time and capital in real estate acquisition, the new system will be implemented on July 1 so that a certain transitional period is provided. In addition, the implementation of the total volume control will be dynamically adjusted to accommodate changes in cross-strait economic markets and societies in the future. In addition to a regular review every six months, flexible adjustments will also be made if necessary, so as to enhance relevant existing administrative mechanisms for the acquisition of real estate in Taiwan by mainland Chinese investors.