Taiwan’s financial sector cuts China exposure to record low

Taiwanese financial institutions’ exposure to China fell to a record-low TWD876.95bn (USD29.71bn) by end-April, down 15.89% from a year earlier, amid a slowing Chinese economy, local debt concerns, and ongoing geopolitical tensions, according to Taiwan’s Financial Supervisory Commission. Banks led the decline, cutting exposure by TWD145.27bn, with reductions in lending, investments, and interbank activity. Exposure has dropped for seven straight years since the onset of the US-China trade dispute. Banks' exposure now stands at 17.2% of sector net worth, the lowest since 2013. Insurance firms also reduced Chinese securities holdings by 29%, while property insurers held none. However, securities and investment trust firms slightly increased exposure, rising 4.2% to NTD11.35bn, due to short-term debt investments.