Lai aims for Asian asset hub status

Taiwan will intensify its initiative to become an Asian asset management center as it seeks to turn its industrial strength into financial clout and enhance the nation’s competitiveness, President William Lai (賴清德) said yesterday. Speaking at a financial development forum in Taipei, Lai said the government would continue adjusting and relaxing financial regulations to give financial institutions greater room to develop the asset management business, but he did not provide any details. The goal is to internationalize Taiwan’s financial markets and establish the country as an important platform connecting industries with global capital, he said. Photo: Screen grab from the Presidential Office’s Flickr page “Taiwan has the industrial strength, and now we need to turn that strength into financial power and national competitiveness,” Lai said. Taiwan’s financial sector posted record or near-record profits in 2024 and last year, with the combined profits of the banking, securities and insurance industries exceeding NT$1 trillion (US$31.62 billion) for the first time in 2024, Lai said. The country’s economy is expected to grow 11.05 percent this year, while profits in the three major financial sectors are projected to surpass those of the previous two years, he said. The government’s asset management initiative has already produced results, with the financial sector’s assets under management (AUM) reaching NT$46 trillion as of June, about NT$14 trillion higher than before the plan was launched in 2024. He did not mention a specific government measure that led to AUM growth, but it could be attributable to soaring share prices as investors chase the artificial intelligence (AI) wave. The TAIEX skyrocketed 59.2 percent in the first six months of this year, spearheaded by Ai-related tech stocks. That came after the weighted index jumped more than 20 percent in 2024 and last year. Shares of Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest contract chipmaking company that accounts for more than 40 percent of the local stock market’s value, had risen 306 percent as of the end of June from the beginning of 2024, backed by the AI boom. Lai said the next phase of the initiative would focus on deepening asset management, strengthening capital markets and expanding cross-border financial services. The president also promoted the Taiwan Innovation Board, a platform clustering innovative listings, saying its total trading value reached NT$125.1 billion in the first six months of this year, up 338 percent from a year earlier. Taiwan should build the board into an Asian fundraising platform for start-ups and attract more international companies to list in Taiwan, with the aim of making it an “Asian NASDAQ,” he said. The government would also draw on the experience of a pilot asset management zone in Kaohsiung to establish regulations covering cross-border finance, family offices and innovative financial products, with successful measures eventually expanded nationwide, he said. The Financial Supervisory Commission is drafting a special law on financial markets and asset management development to provide a stable and predictable legal framework, the president said. The Hualien District Prosecutors’ Office yesterday launched an investigation following allegations by a former foreign correspondent in Taiwan of widespread vote-buying in Hualien County. In an interview with Formosa TV (FTV, 民視) aired on Saturday, former Financial Times Taiwan correspondent Kathrin Hille spoke about Taiwan’s democracy and said that she now lives in rural Hualien, where “all the votes are bought.” Neighbors would talk about who had come by and leave cash on the table showing “how much each vote was worth that year,” Hille said. The practice needs to be addressed, considering Taiwan has been a democracy for many SAFETY RISKS: A Taiwanese man who was traveling to Shanghai for business was allegedly questioned for six hours due to his past work for Amnesty International The Mainland Affairs Council (MAC) urged Taiwanese to exercise caution when considering trips to China after a Taiwanese man was allegedly questioned for six hours in Shanghai over past work with Amnesty International. The council on Saturday said in a report that 426 Taiwanese have gone missing or been detained or had their freedom of movement restricted in China since Jan. 1, 2024. The figure is up by seven from the previous week. New Chinese entry and exit regulations are due to take effect on Sept. 15, the council said. Of the 426 cases, 160 people have gone missing, up Palau’s president yesterday called for a “unified” Pacific response to a missile test by China in July, while Taiwan and its Pacific allies a day earlier at the Pacific Islands Forum (PIF) reaffirmed their commitment to peace, stability and prosperity. China gave only a handful of nations short notice before test-firing an intercontinental ballistic missile in July, sparking condemnation from several Pacific leaders. The 18-member PIF being held in Palau was expected to release a communique after press time last night, with a formal response to the test possibly included. Palau, which invited Taiwan to attend sideline events as an aid partner, urged DEFENSE PROCUREMENT: The Pentagon has told a US congressional hearing that Taiwan has ‘top priority worldwide’ in the delivery of Harpoon missile systems The US Navy and Boeing Co have conducted a series of tests for land-based Harpoon anti-ship missile system being supplied to Taiwan and released footage showing the system striking a target vessel at sea. The weapons system and support equipment tested were reportedly tailored for Taiwan, while the first launch vehicles and other components have already begun arriving in Taiwan, with the full delivery of 100 systems scheduled to be completed by the end of 2028. Pentagon officials have previously told a US congressional hearing that Taiwan has “top priority worldwide” in the delivery of Harpoon missile systems, with production