Room To Grow
By Fiano, Andrea | |
Proquest LLC |
At a roundtable in
Global Finance: What are the main developments regarding the emergence of
T.-Y. Lin, director general, economic research department,
Also, we would like to have the exchange-rate and interest-rate fixing mechanisms developed to help renminbi financial product development. And we would like to enhance the flowback channels for Taiwanese renminbi funds, which we would need to negotiate with the Chinese authorities. By doing this, for instance, we can offer renminbi lending to Taiwanese firms in mainland
Finally, we welcome both domestic and foreign companies to issue renminbi bonds here in
Secondly,
Thirdly, we need the rate-fixing benchmark set up so that the banks can utilize the rate as the index or benchmark in designing renminbi products. Lastly, I would like to see more liquidity in renminbi market making in Taiwan.The percentage of the renminbi transactions that remain in
We have seen encouraging signs of the buildup of renminbi lending, attracted by the low interest rates here, but that channel is fairly limited. We know local regulators are looking to expand that channel to include other areas of
Second is bonds.The size of
But there are challenges in growing this market. The higher yields are in
Right now
Taiwanese companies should leverage this advantage and try to negotiate with
GF: Is Taiwan challenging
The second advantage is that
Third is market access.There has to be a way of attracting corporates to set up treasury offices dealing with the renminbi here in
On the retail banking side we have so far not been able to attract foreign residents to consider banks in
Lo:
Hsieh: We have to learn from
GF: What about the macroeconomic situation in
Li: Based on our estimation,
Also, we believe the levels of investment will be much better-especially in the semiconductor industry-than the government estimates.
Phoo: We are looking for 3.9% growth in GDP this year. Q4 last year came in at 2.9%, so I think we are seeing upward momentum in economic activity.We are cautiously optimistic in terms of recovery in
In terms of risks, apart from
Lin: This year,Taiwan's economic performance will be much better; at least 3% growth in GDP will not be too difficult. And the impact of QE tapering will be relatively limited.Taiwan has plenty of liquidity, and the current account is quite healthy. So if the Fed keeps up the current pace of scaling down asset purchasing, it won't have any significant impact on
Exports will pick up as well because
Lo: Unless we see a significant increase in US capital spending and hiring, Fubon's forecast is for
GF: Taiwanese exposure to mainland
Lin: Our exports are concentrated in information and communication technology. We cannot do without mainland
Phoo: In manufacturing, you have to distinguish between the low-end, low-value producers and the high-end, high-value producers.There's no doubt recent changes in the landscape in
However, competition is heating up from mainland Chinese producers in low-value industries. At the higher end, the Chinese market still offers a relatively favorable environment, but we're not sure for how long this can be sustained.
Taiwanese export relationships in mainland
On the other hand,
GF: 2014 looks to be a year when the relationship between developing markets and emerging markets changes. To what extent could
Phoo: We are far from the scenario of 1997. Most of the economies in
Nevertheless, there are pockets of concern, particularly in the property markets in
T.-Y. Lin is director general of the economic research department at the
Copyright: | (c) 2014 Global Finance Media Inc. |
Wordcount: | 3028 |
A Buyer’s Market
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News