Financial and Professional Services Opportunities

An Expert's View about Banking, Finance and Insurance in Taiwan

Last updated: 20 Sep 2011

Taiwan’s financial services industry, which accounts for 10% of the total GDP, has changed greatly since financial liberalisation in the 1990s and become an international and liberalised industry.

Sector briefing Financial and Professional Services Opportunities in Taiwan Why Taiwan? Taiwan is the fifth largest economy in Asia and the third largest banking sector by asset in Asia. The continuous relaxation in financial policies on investment restrictions with China also enhances the strong trade and investment links with China. Taiwan?s financial services industry, which accounts for 10% of the total GDP, has changed greatly since financial liberalisation in the 1990s and become an international and liberalised industry. Steady economic growth, high rates of savings, and ongoing financial liberalisation make ?Taiwan?s capital markets Taiwan an attractive market for capital. should continue to offer Find general information on Taiwanese market opportunities for foreign conditions on UKTI?s website. The Doing investors.? Business Guide for Taiwan gives an overview of Taiwan?s economy, business culture, potential opportunities and an introduction to other relevant issue. UK Trade & Investment Sector briefing: Financial and Professional Services opportunities in Taiwan. Continuous relaxation in financial policies Opportunities on investment restrictions with China Steady economic growth, high rates of savings, Several measures to relax investment and ongoing financial liberalisation make restrictions with China have been passed: Taiwan an attractive market for capital. Increasing opportunities in wealth ? abolition of a regulation that requires management, foreign currency securities proof that capital put into local exchange, pension fund management and securities and futures markets by training in financial services are worth foreign institutional investors does not noting. come from China, when registering with the Taiwan Stock Exchange Corp Inheritance and gift taxes sharply cut to (TSEC); 10% from as high as 50% ? opening mutual listings of Exchanged Trade Funds (ETF) on the Taiwan and Taiwan Cabinet approved to reduce inheritance Hong Kong stock markets; and gift taxes to a flat 10% from as high as ? Allowing companies listed on the Hong 50% in late 2008, which encouraged people to Kong Stock Exchange to raise second pour more money into the stock market ?as the listings on Taiwan?s stock market or rich repatriate or keep their money in Taiwan.? issue Taiwan Depository Receipts It is estimated that more than NTD500bn (TDRs), in a bid to attract Taiwanese (GBP10.5bn) overseas capital flew back to capital back; Taiwan after the inheritance and gift tax rate ? allowing local securities investment cut. trust firms to invest in China or The implementation of Economic Co- purchase shares of China?s investment operation Framework Agreement between funds management companies, and Taiwan and China allowing local futures firms to invest in China?s counterparts directly or The signing of an Economic Co-operation indirectly; and Framework Agreement (ECFA)-a quasi free ? cancelling rules that allow offshore trade agreement between Taiwan and China-in funds to invest a certain ratio in Sep 2010 has further strengthened the cross Chinese shares as well as Hong straight business link. Under the framework Kong/Macao H and red chip shares. agreement, Taiwanese banks, insurers and futures and securities firms are able to operate Taipei City Government plans to in China. So far, 6 Taiwanese banks have restructure its current PPP/BOT and PFI already set up branches in China. framework to align it with the UK?s With cross-strait bilateral trade totalled There is also scope for other professional US$145.37bn (GBP88.8bn) in 2010, the services. Given that the Taiwanese authorities implementation of ECFA is widely seen as have a major infrastructure renewal initiative necessary and a long-term positive step for the under way, with GBP80bn set aside over the development of Taiwan?s financial market with next eight years for public construction anticipation of greater capital inflows. projects, and have expressed an interest in the UK?s PPP model. This could highlight UK Local analysts are in agreement that the expertise in infrastructure, construction, and signing of ECFA could further bring huge supporting legal and professional services. Chinese capital flows into Taiwan. The continuing cross-straits rapprochement is likely In 2011, the Taipei City Government is to lead to further opportunities for UK business planning to launch an affordable house project and the industry is seeking to maximize the with applying the PFI model. City officials are benefits from this optimistic mood and searching for supports from UK professional continued market liberalisation. consultants to advice, plan and bridge potential investors for the public project; this would provide a precious opportunity for UK PFI specialists to explore business opportunities in Taiwan. UK Trade & Investment Sector briefing: Financial and Professional Services opportunities in Taiwan. If you have any questions on the opportunities above, contact the UKTI Taiwan Financial and Professional Services contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website. UK Trade & Investment Sector briefing: Financial and Professional Services opportunities in Taiwan. Major events and activities Next steps - How UKTI can help Find full details of all events in Taiwan and this sector on the UKTI website. New British companies wishing to develop their export events are added daily to the site and business in the Taiwanese market are advised you can register to be alerted to them on a to undertake as much market research and daily, weekly or monthly basis planning as possible in the UK. UKTI?s team in Taiwan, with its wide local knowledge and UKTI?s Tradeshow Access Programme (TAP) experience, can provide a range of services to provides grant support for eligible Small & British-based companies wishing to grow their Medium Sized Enterprises (SME's) to attend business in global markets. trade shows overseas. Find out more about UKTI support for attendance at overseas This can include: events ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential UKTI contacts customers in the Taiwanese market ? Establishment of interest of such Vicki Wu contacts in working with you Senior Commercial Officer ? Arranging appointments British Trade and Cultural Office ? Organise seminars or other events for Tel: +886 2 8758 2065 you to meet contacts and promote your Email: Vicki. Wu@fco.gov.uk company in the Taiwanese market www.uktradeinvest.gov.uk This work is available via our Overseas Market Emily Chen Introduction Service (OMIS) a chargeable Commercial Officer service which assists British-based companies British Trade and Cultural Office wishing to enter or expand their business in Tel: +886 2 8758 2011 overseas markets. Email: Emily.Chen@fco.gov.uk www.uktradeinvest.gov.uk To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office. Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © Published 2011 by UK Trade & Investment. ©Crown Copyright 2011 You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Financial and Professional Services opportunities in Taiwan.
Posted: 16 September 2011, last updated 20 September 2011

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Financial and Professional Services Opportunities in Taiwan   By UK Trade & Investment
Financial and Professional Services Opportunities   By UK Trade & Investment