Aug 31, 2019 General Comments Off on Exposure of Taiwan’s finance firms to Hong Kong down amid chaos
Taipei-Exposure of Taiwan's financial sector to Hong Kong fell more than NT$34 billion (US$1.08 billion) from a month earlier in July at a time when investors took a more prudent attitude toward market conditions in the international financial hub amid protests against China's intervention in the region, according to the Financial Supervisory Commission (FSC).
However, the FSC, the top financial regulator in Taiwan, said it remains to be seen whether the decline in exposure to Hong Kong is a direct result from the escalating turmoil in the region, adding that it needed more time to monitor market conditions.
The FSC said it is possible the decline in exposure was simply a result of the Taiwanese financial sector's normal business adjustments.
In June, thousands of Hong Kong people took to the streets to protest a proposed bill that would have allowed extraditions to China. While the bill has been shelved, large numbers have continued to rally on the streets for a 13th consecutive week, causing clashes between protesters and police and the arrest of several pro-democracy leaders in the movement.
At a time of the rising chaos in Hong Kong, exposure by Taiwan's banking, insurance and securities businesses to the territory fell below the NT$1 trillion-mark to about NT$993.50 billion as of the end of July, down some NT$34.70 billion at the end of June.
The massive demonstrations and violence in Hong Kong has shaken the status of the territory as a global financial center, which has turned away some foreign investors, market analysts said.
As for Taiwan's banking sector, data compiled by the FSC showed that the sector had extended NT$542.9 billion in loans to Hong Kong and had poured NT$164.5 billion as investment into the region as of the end of July.
The total exposure from the local banking sector hit NT$707.4 billion as of the end of July, the data indicated.
Despite the chaos, Chuang Hsiu-yuan (???), deputy chief of the Banking Bureau under the FSC, said that so far, the branches of Taiwan's banks in Hong Kong has been operating as usual.
Chuang said that as Taiwan's banks in Hong Kong are all specialized at corporate banking, there have been no signs of irregular withdrawals by individual consumers.
Commenting on the exposure by Taiwanese securities firms, Tsai Li-ling (???), deputy director of the FSC's Securities and Futures Bureau, said the total investments of the sector totaled about NT$80.30 billion, including marketable securities investment and business investment.
Meanwhile, Wang Li-hui (???), deputy director of the FSC's Insurance Bureau, said the local insurance sector had a total of NT$205.8 billion-worth of exposure to Hong Kong, accounting for 0.79 percent of the sector's total capital.
Of the exposure, NT$204.2 billion came from life insurance companies and NT$1.5 billion from non-life insurance operators, Wang said.
While it is unlikely that Taiwan will replace Hong Kong as a financial hub for now, the Taiwan Institute of Economic Research has urged the government to come up with measures to help Taiwan serve as a regional fund-raising center by better utilizing its ample idle money, which could boost the country's visibility in the global financial markets.
Source: Focus Taiwan News Channel
Comments Off on Aviation Week Network’s MRO Series Goes Virtual this Fall With MRO Asia-Pacific and MRO TransAtlantic
Comments Off on CNA Transitions to AIR Worldwide as its Primary Catastrophe Risk Management Platform
Comments Off on Ovid Therapeutics and Angelini Pharma Enter into Exclusive License Agreement to Develop, Manufacture and Commercialize OV101 for the Treatment of Angelman Syndrome in Europe