Mon, Nov 18, 2019 - Page 16 News List

Financial sector’s Hong Kong exposure increases

Staff writer, with CNA

The local financial sector’s exposure to Hong Kong increased to NT$1.018 trillion (US$33.3 billion) as of the end of September, up from NT$994.59 billion at the end of August, even as the territory experienced escalating political chaos, the Financial Supervisory Commission said on Friday.

The operations of Taiwanese institutions have remained normal, with healthy cash flows, and they have been requested to report to the commission, it said.

The commission would continue monitoring the local financial sector’s exposure to Hong Kong, it added.

The local financial sector’s exposure to the territory was NT$1.023 trillion at the end of May and has had risen slightly to NT$1.028 trillion as of the end of June, despite the protests, commission data showed.

The figure fell to NT$993.50 billion at the end of July, before bouncing back to NT$994.59 billion at the end of August and increased further in September, the data showed.

Taiwanese lenders operate 19 branches, three sub-branches and two representative offices in Hong Kong, the Banking Bureau said.

The exposure of the banking sector totaled NT$731 billion as of the end of September — NT$559.1 billion in loans and NT$171.9 billion in investments — the bureau said.

The securities and futures industry’s exposure to Hong Kong rose to NT$74.84 billion as of the end of September, the Securities and Futures Bureau said.

The Insurance Bureau said the insurance industry had NT$212.1 billion in exposure to Hong Kong as of the end of September, up NT$2.9 billion from the end of August and accounting for 0.81 percent of the industry’s total disposable capital.

The political unrest has led to Hong Kongers opening wealth management accounts in Taiwan in the past few months, sources said.

The sector is watching closely whether and how the trend would continue, they said.

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