Financial and Professional Services Opportunities in Taiwan

An Expert's View about Fund Management in Taiwan

Last updated: 14 Mar 2011

Taiwan is the fifth largest economy in Asia. Steady economic growth, high rates of savings, and ongoing financial liberalisation make Taiwan an attractive market for capital.

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 capital markets should continue to offer Taiwan?s financial services industry, which opportunities for foreign accounts for 10% of the total GDP, has investors? 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 an attractive market for capital. Find general information on Taiwanese market conditions on UKTI?s website. The Doing 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 Opportunities Continuous relaxation in financial policies Steady economic growth, high rates of savings, on investment restrictions with China and ongoing financial liberalisation make Taiwan an attractive market for capital. Several measures to relax investment Increasing opportunities in wealth restrictions with China have been passed: management, foreign currency securities exchange, pension fund management and ? abolition of a regulation that requires training in financial services are worth proof that capital put into local noting. securities and futures markets by foreign institutional investors does not Inheritance and gift taxes sharply cut to come from China, when registering 10% from as high as 50% with the Taiwan Stock Exchange Corp (TSEC); Taiwan Cabinet approved to reduce inheritance ? opening mutual listings of Exchanged and gift taxes to a flat 10% from as high as Trade Funds (ETF) on the Taiwan and 50% in late 2008, which encouraged people to Hong Kong stock markets; pour more money into the stock market ?as the ? Allowing companies listed on the Hong rich repatriate or keep their money in Taiwan.? Kong Stock Exchange to raise second It is estimated that more than NTD500bn listings on Taiwan?s stock market or (US$15.5bn) overseas capital flew back to issue Taiwan Depository Receipts Taiwan after the inheritance and gift tax rate (TDRs), in a bid to attract Taiwanese cut. capital back; ? allowing local securities investment Recent MoU between Taiwan and China on trust firms to invest in China or financial services purchase shares of China?s investment funds management companies, and The recent signing of a MoU between Taiwan allowing local futures firms to invest in and China on financial services, and an China?s counterparts directly or Economic Co-operation Framework Agreement indirectly; and (ECFA ? similar to a free trade agreement ? cancelling rules that allow offshore which is due to be signed between Taiwan and funds to invest a certain ratio in China in summer 2010), the market remains Chinese shares as well as Hong upbeat despite the recent financial turmoil. Kong/Macao H and red chip shares. With cross-strait bilateral trade in 2009 Taipei City Government plans to totalling US$109.3bn, the signature of such a restructure its current PPP/BOT memorandum is widely seen as necessary and framework to align it with the UK?s a long-term positive step for the development of Taiwan's financial market with anticipation of There is also scope for other professional greater capital inflows. But the market opening services. Given that the Taiwanese authorities on either side will happen only when both sides have a major infrastructure renewal initiative reach a consensus in the discussion of an under way, with £80bn set aside over the next ECFA. eight years for public construction projects, and have expressed an interest in the UK?s PPP Local analysts are in agreement that the model. This could highlight UK expertise in signing of an ECFA could further bring huge infrastructure, construction, and supporting Chinese capital flows into Taiwan. The legal and professional services. continuing cross-straits rapprochement is likely to lead to further opportunities for UK business. Firms such as Standard Chartered Bank, HSBC, Schroders and Aberdeen Asset Management are seeking to maximize the benefits from this optimistic mood and continued market liberalisation. 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 UKTI contacts Major events and activities Alan Bell Workshop with Taipei City Government on Head of Trade Development PPP Framework British Trade and Cultural Office Contact: British Trade and Cultural Office Tel: +886 2 8758 2032 Email: Emily.chen@fco.gov.uk Email: Alan.Bell@fco.gov.uk Time: July/August 2010 www.ukti.gov.uk Find full details of all events in this Emily Chen country and sector on the UKTI website. Commercial Officer New export events are added daily to the site British Trade and Cultural Office and you can register to be alerted to them on a Tel: +886 2 8758 2011 daily, weekly or monthly basis Email: Emily.Chen@fco.gov.uk www.ukti.gov.uk UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Financial and professional services opportunities in Taiwan Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Taiwanese market are advised you to meet contacts and promote your to undertake as much market research and company in the Taiwanese market planning as possible in the UK. UKTI?s team in Taiwan, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Taiwanese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you 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 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Financial and professional services opportunities in Taiwan
Posted: 29 September 2010, last updated 14 March 2011