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.
EXPANSIONIST: China deploys an average of 40 to 50 warships and coast guard vessels daily in the South China Sea, despite pledges not to militarize the region, an official said China is attempting to expand its influence across the First Island Chain and increase pressure on Japan by sending coast guard vessels into waters off of Taiwan under the pretext of maritime negotiations with Japan and the Philippines, a national security official said yesterday. China’s recent actions in the waters east of Taiwan and Japan and the Philippines’ exclusive economic zones (EEZ) are attempts to establish dominance in First Island Chain waters, said the official who declined to be named, adding that this is “expansion disguised as law enforcement.” Framing China’s actions solely as a cross-strait issue is a serious misjudgment that
Through analyzing fossil evidence, a research team at National Taiwan University (NTU) discovered the largest endemic bird to have lived in Taiwan, naming it Pavo miejue, or extinct peafowl (滅絕孔雀). The Mikado pheasant, which is printed on the back of the NT$1,000 bank note, was previously believed to be the biggest endemic bird to Taiwan. The research team’s findings suggest that Pavo miejue lived during the Pleistocene epoch tens of thousands of years ago. It is the first endemic extinct bird species discovered and formally named in Taiwan. The study was coauthored by NTU Institute of Ecology and Evolutionary Biology professor Tsai Cheng-hsiu (蔡政修),
Taiwan Taoyuan International Airport is to suspend its automated Skytrain service connecting Terminal 1 and Terminal 2 starting on July 1 to facilitate connection works for the upcoming Terminal 3, the airport operator said today. Passengers and staff who need to travel between the two terminals after the suspension can instead use the Taoyuan MRT or the airport's 24-hour shuttle bus service, Taoyuan International Airport Corp said. The Taoyuan MRT Airport Line directly links the two terminals, while the shuttle buses are to operate around the clock, the company added. The Skytrain provides free transportation between the airport’s two terminals for travelers and
Taiwan ranked 42nd in terms of peacefulness among 163 countries, down five places from last year, according to this year’s Global Peace Index. With an overall score of 1.751, Taiwan dropped from 37th last year, the report published by the global Institute for Economics and Peace showed. The overall score measures a country’s level of peacefulness using 23 quantitative and qualitative indicators across three domains — ongoing domestic and international conflict, societal safety and security, and militarization. While Taiwan ranked 42nd worldwide, it was listed in ninth place among the 19 Asian-Pacific countries in the report, after New Zealand, Singapore, Japan, Malaysia,
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