Taiwan China Exposure Reduction Reaches 13.4% in February

Taiwan China exposure reduction deepened in February as Taiwanese financial institutions’ aggregate exposure to China fell 13.44% year-on-year to NTD781.26bn(USD24.44bn), according to Financial Supervisory Commission data.

The ratio of China exposure to combined net worth declined to 14.7% from 18% a year earlier.

Banks accounted for the largest drop, with exposure down 13% to NTD723.68bn, reflecting concern over China’s slowing economy, local government debt and property market risks.

Insurance firms cut exposure by 15% to NTD49.8bn, while securities brokerages, futures firms and investment trusts reduced theirs by 35.46% to NTD7.78bn.

The Taiwan China exposure reduction trend suggests financial firms are taking a more cautious stance towards the mainland economy.