The Conference on Sustainable Economic Development yesterday passed an array of financial reform proposals, but ran into heated debate over cross-strait issues.
The finance and banking panel at the conference reached agreement on proposals to reopen licensing for new banks and financial holding firms coupled with a supporting exit mechanism. The panel also proposed requirements for financial transparency, reviewing fund sources and corporate governance in mergers and acquisitions activities, and management of proxy vote solicitation.
Participants at the meeting also reached consensus on the proposed relaxation of derivatives trading to facilitate the nation's development into a regional asset management hub and possible revocation of the so-called "revolving door" regulation that restricts retired government officials from serving in financial institutions previously under their authority.
The conference consented to allow local mutual funds and discretionary funds, excluding government funds like pension funds, to invest part of their assets in stock markets in China, Hong Kong and Macau, and securities issued by the Chinese government or companies. It was the only consensus involving relaxation of cross-strait regulations reached at the conference.
Other cross-strait opening measures, such as the establishment of bank branches and subsidiaries and investment in Chinese banks, the trading of yuan in Taiwan and easing of the ceiling on Chinese investment, currently capped at 40 percent of a listed firm's net worth, were listed under "other opinions."
"The whole conference is like a show, in which we do not expect any substantial relaxation of cross-strait restrictions or impressive changes in economic policy and environment," said Jeff Chang (
The proposed easing may not materialize until the second half of next year as the ruling party seeks credit and support in the presidential election in 2008, Chang said.
The discussion on investments in China sparked heavy debate in the the conference in the face of strong opposition from Taiwan Solidarity Union (TSU) lawmakers.
TSU caucus whip David Huang (
Taiwan Electrical and Electronic Manufacturers' Association chairman Rock
Hsu (許勝雄) argued that investment in China was a crucial part of Taiwanese
companies' global development plan. Closer economic ties were the foundation
for peaceful cross-strait relations as both governments would exert more
caution in dealing with bilateral relations without resorting to armed force
easily, he added.
Supporters like Chinese Nationalist Party (KMT) Legislator Lee Jih-chu (李紀珠) said that banning banks from investing in China could damage their competitiveness and lead to a liquidity crisis in light of a shrinking home market.
Taipei has once again made it to the top 100 in Oxford Economics’ Global Cities Index 2025 report, moving up five places from last year to 60. The annual index, which was published last month, evaluated 1,000 of the most populated metropolises based on five indices — economics, human capital, quality of life, environment and governance. New York maintained its top spot this year, placing first in the economics index thanks to the strength of its vibrant financial industry and economic stability. Taipei ranked 263rd in economics, 44th in human capital, 15th in quality of life, 284th for environment and 75th in governance,
The Sports Administration yesterday demanded an apology from the national table tennis association for barring 17-year-old Yeh Yi-tian (葉伊恬) from competing in the upcoming World Table Tennis (WTT) United States Smash tournament in Las Vegas this July. The sports agency said in a statement that the Chinese Taipei Table Tennis Association (CTTTA) must explain to the public why it withdrew Yeh from the WTT tournament in Las Vegas. The sports agency said it contacted the association to express its disapproval of the decision-making process after receiving a complaint from Yeh’s coach, Chuang
Control Yuan Secretary-General Lee Chun-yi (李俊俋) tendered his resignation last night, admitting that he had misused a government vehicle, as reported by media. His resignation was immediately accepted by the Control Yuan. In a statement explaining why he had resigned, Lee apologized for using a Control Yuan vehicle to transport his dog to a pet grooming salon on May 20. The issue first came to light late last month, when TVBS News reported that Lee had instructed his driver to take the dog to the salon. The news channel broadcast photos that it said were taken by an unnamed whistle-blower, which purportedly showed the
A former officer in China’s People’s Liberation Army (PLA) who witnessed the aftermath of the 1989 Tiananmen Square massacre has warned that Taiwan could face a similar fate if China attempts to unify the country by force. Li Xiaoming (李曉明), who was deployed to Beijing as a junior officer during the crackdown, said Taiwanese people should study the massacre carefully, because it offers a glimpse of what Beijing is willing to do to suppress dissent. “What happened in Tiananmen Square could happen in Taiwan too,” Li told CNA in a May 22 interview, ahead of the massacre’s 36th anniversary. “If Taiwanese students or
RSS