Kong: Overseas investors are major shareholders of Taiwan's stock market, with 30 percent share of market value. It was a great opportunity to make updates of Taiwan's capital market and introduce competitive industries to international investors through the forum, in which we met over 600 investors and financial professionals who manage a total of US$5.82 trillion in assets, or over 70 percent of global assets.
We also took the chance to stress Taiwan's resolve to push forward with financial reforms to ease foreign investors' concerns following the failed share sale of state-controlled Taiwan Business Bank (台灣企銀). Also, Morgan Stanley Capital International chairman Henry Fernandez agreed to cooperate with the Taiwan Futures Exchange to develop US dollar-denominated futures and options products, while Lehman Brothers agreed to include Taiwan's bond market in its Global Aggregate Index, one of the most-referred indices by global investors. All these activities enhance Taiwan's visibility in the global investment arena. We will be holding overseas roadshows in Japan and the Middle East to promote the offshore bourse early next year.
TT: Howard Davies, former chair of the UK's Financial Services Authority (FSA), said in his trip to Taiwan in September that it is very difficult in the long run for one agency to serve as the regulator and the promoter of a financial system. Do you agree?
Kong: As a seasoned financial professional with more than 20 years of experience in foreign banks, I think Taiwan has to be active in raising its international visibility through promotion, especially with an eye to becoming a regional financial services hub. The resources and connections I fostered in past work experience can be utilized to facilitate the goal and this is in part why I was appointed.
Even FSA officials said in the forum that they are impressed by Taiwan's efforts to push forward with reforms. The authority should take the lead in this process.
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