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.
SETBACK: Apple’s India iPhone push has been disrupted after Foxconn recalled hundreds of Chinese engineers, amid Beijing’s attempts to curb tech transfers Apple Inc assembly partner Hon Hai Precision Industry Co (鴻海精密), also known internationally as Foxconn Technology Group (富士康科技集團), has recalled about 300 Chinese engineers from a factory in India, the latest setback for the iPhone maker’s push to rapidly expand in the country. The extraction of Chinese workers from the factory of Yuzhan Technology (India) Private Ltd, a Hon Hai component unit, in southern Tamil Nadu state, is the second such move in a few months. The company has started flying in Taiwanese engineers to replace staff leaving, people familiar with the matter said, asking not to be named, as the
The prices of gasoline and diesel at domestic fuel stations are to rise NT$0.1 and NT$0.4 per liter this week respectively, after international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to rise to NT$27.3, NT$28.8 and NT$30.8 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to rise to NT$26.2 per liter at CPC stations and NT$26 at Formosa pumps, they said. The announcements came after international crude oil prices
SinoPac Financial Holdings Co (永豐金控) is weighing whether to add a life insurance business to its portfolio, but would tread cautiously after completing three acquisitions in quick succession, president Stanley Chu (朱士廷) said yesterday. “We are carefully considering whether life insurance should play a role in SinoPac’s business map,” Chu told reporters ahead of an earnings conference. “Our priority is to ensure the success of the deals we have already made, even though we are tracking some possible targets.” Local media have reported that Mercuries Life Insurance Co (三商美邦人壽), which is seeking buyers amid financial strains, has invited three financial
CAUTION: Right now, artificial intelligence runs on faith, not productivity and eventually, the risk of a bubble will emerge,’ TIER economist Gordon Sun said Taiwanese manufacturers turned more optimistic last month, ending a five-month streak of declining sentiment as concerns over US tariffs, currency volatility and China’s overcapacity began to ease, the Taiwan Institute of Economic Research (TIER) said yesterday. The manufacturing business confidence index rose 1.17 points from June to 86.8, its first rebound since February. TIER economist Gordon Sun (孫明德) attributed the uptick to fading trade uncertainties, a steadier New Taiwan dollar and reduced competitive pressure from Chinese producers. Taiwan’s semiconductor industry is unlikely to face significant damage from Washington’s ongoing probe into semiconductors, given the US’ reliance on Taiwanese chips to power artificial
RSS