Taiwan is not likely to replace Hong Kong as Asia’s financial center, as the nation has stricter regulations on foreign currency exchange and lags behind in terms of English proficiency, Financial Supervisory Commission Chairman Wellington Koo (顧立雄) said yesterday.
“If we define an international financial center as a place with complete freedom of capital movement, Taiwan would not be one, as the nation aims to maintain the stability of the exchange rate and has rules and limitations on capital flow,” Koo said on the sidelines of an event in New Taipei City.
Taiwan’s non-English environment has also made it more difficult to attract international banks or financial agencies than Hong Kong or Singapore, he said.
Moreover, there are several fundamental differences between Taiwan and Hong Kong in terms of the taxation system and business environment, he added.
The commission is planning to allow banks to include 16 new products in their wealth management programs to attract wealthy investors, who could park their money in Taiwan, but it still needs to negotiate the matter with the central bank, as eight of the 16 products are related to interest rates or exchange rates, he said.
The commission would make a formal announcement by the end of this year after the two reach a consensus, he added.
The launch of such products would provide an incentive for local firms and international investors to park funds in Taiwan, he said.
Further deregulation of banks’ offshore banking units (OBUs) would provide further incentive, he added.
To limit risks, only banks with stronger financial fundamentals would be allowed to launch the products, which could be sold only to high net worth clients, Koo said last month.
Koo has proposed allowing domestic companies or individuals to open accounts at OBUs to apply for loans denominated in foreign currencies, which also needs approval from the central bank.
Taking out foreign-currency loans at OBUs would not be subject to regulations on the exchange rate, making fund flows more convenient, he said.
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS