Public sector efforts to develop cross-strait financial operations are paying handsome dividends, with the ROC government continuing to implement regulatory easing as a way of building Taiwan into a regional financial hub, Premier Jiang Yi-huah said Feb. 20.
“Assisting Taiwan firms operating in mainland China and expanding the presence of local financial firms on the other side of the strait are both key goals for the government,” Jiang said.
Efforts spearheaded by the Financial Supervisory Commission in this regard should be commended, he said, adding that the FSC will continue working to this end with the central bank and Mainland Affairs Council.
The premier made the remarks after a Cabinet briefing by the FSC on the current state of cross-strait financial sector development.
Citing official statistics, Jiang said yuan savings in Taiwan topped 200 billion (US$32.83 billion) as of the end of January. “Other than encouraging local firms to develop more diversified products and services, the FSC will work with the central bank for a yuan flow-back mechanism, helping build Taiwan into an offshore yuan center.”
But many of these developments can happen only after the Cross-Strait Agreement on Trade in Services takes effect, the premier said, adding that he has directed all relevant agencies to seek support from the Legislature and society for the pact’s approval.
According to the FSC, financial sector development is part of President Ma Ying-jeou’s golden decade blueprint, with the agency responsible for implementing 10 strategies that will foster cross-strait collaboration spanning banking, capital market, foreign exchange and insurance.
Accomplishments to date include approving yuan-denominated activities by local banks’ domestic banking units; allowing local financial institutions to issue yuan-denominated investment products, including bonds, derivatives, insurance policies and mutual funds; and proposing rules to expand the business scope of insurance carriers operating on both sides of the strait.
The FSC expects these measures to help increase liquidity of Taiwan’s financial markets, facilitate talent training, spur economic growth and strengthen the country’s competitiveness in the Asia-Pacific region. (SFC-JSM)
Write to Taiwan Today at ttonline@mofa.gov.tw