Taiwan Cuts China Investments to Record Low Amid Market Fears

Taiwanese insurers and banks have significantly reduced their exposure to Chinese assets, cutting investments to a record low of NTD828.39bn (USD28.28bn) as of May, down nearly 20% year-on-year. Data from Taiwan’s Financial Supervisory Commission shows banks led the pullback, trimming exposure by NTD176.41bn to NTD768.45bn. Insurers followed, reducing their holdings by over 30% to NTD49.9bn. Securities brokers and investment trusts also pared back their positions. The decline marks the seventh consecutive year of reduced exposure amid concerns over China’s economic slowdown and growing geopolitical risks tied to the US-China rivalry.