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.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
RSS