The Ministry of Finance is reviewing plans to allow Taiwan's securities and insurance companies to set up branches or subsidiaries in China.
Premier Chang Chun-hsiung (張俊雄) yesterday instructed the ministry to conduct a risk management report within one month on the financial services sector plan.
The Executive Yuan plans to use the report to determine whether to deregulate the industries. Chang made the decision during a weekly Cabinet meeting yesterday.
One industry observer said that deregulation is inevitable.
"The Economic Development Advisory Conference (EDAC, 經發會) made a resolution that the administration should deregulate financial services to allow investment in China. Sooner or later, the government will have to deregulate in this area," said Yang Ya-hwei (楊雅惠), a research fellow at the Chunghwa Institute for Economic Research.
"Since the EDAC has made the resolution, the finance ministry would like to first deregulate securities companies, securities investment trust companies and insurance companies, allowing them to set up branches or subsidiaries in China. However, since the plan involves jurisdictional problems in regard to China, caution is required," government spokesman Su Tzen-ping (
Mainland Affairs Council Chairwoman Tsai Ing-wen (蔡英文) basically supports Yen's proposal, but said it would require detailed planning, Su said.
"Deregulation is a possibility and it should be planned for starting now," Su quoted Tsai as saying, adding that Tsai also suggested there be a comprehensive plan and proper design in the supervisory mechanism. Meanwhile the sequence of deregulation and risk management in capital outflow should also be watched.
Yang said that the administration should only oversee the regulatory framework and keep its nose out of business.
"Following WTO entry, both China and Taiwan have to open financial markets. It's time for the financial industry to evaluate whether to invest in China. What the administration should do is to provide transparency and deregulation. What it shouldn't do is worry whether the financial industry will make money investing in China," Yang said.
To executives in the securities and insurance sector, the Cabinet's move yesterday was not very encouraging.
"It's still too early to discuss setting up branches in China [for securities companies], since China's attitude is not yet clear. Taiwan cannot decide it alone," said Jackson Chang (張松雲), vice president at Capital Securities Corp (群益證券). Capital Securities has had a representative office in Shanghai since 1997, mostly for research.
Another insurance company executive has a similar view.
"It depends on whether [China] will accept Taiwan's deregulation or not," said Victor P. Hsu (
Shin Kong set up a representative office in Beijing at the beginning of this year.
The jurisdiction on supervising financial institutions across the Strait is a core problem facing the administration on the process of deregulation.
Yen said that until the jurisdiction problem is resolved, Taiwan will not allow its banking industry to establish branches in China.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
Prices of gasoline and diesel products at domestic gas stations are to fall NT$0.2 and NT$0.1 per liter respectively this week, even though international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices continued rising last week, as the US Energy Information Administration reported a larger-than-expected drop in US commercial crude oil inventories, CPC said in a statement. Based on the company’s floating oil price formula, the cost of crude oil rose 2.38 percent last week from a week earlier, it said. News that US President Donald Trump plans a “secondary