Taiwanese financial holding companies increased their overall overseas exposure — including lending, investments and interbank transactions — to NT$27.38 trillion (US$845.69 billion) in the first quarter, data compiled by the Financial Supervisory Commission showed yesterday.
The 15 financial holding companies’ overall exposure in overseas markets at the end of March rose by NT$1.03 trillion from NT$26.35 trillion at the end of last year, as the firms increased overseas lending and beefed up their overseas investments, the commission said.
It said that first-quarter exposure was the highest in 36 quarters since such data started to be released in the second quarter of 2015.
Photo: Reuters
Financial holding companies’ top 10 markets for overseas exposure remained the same in the first quarter as the previous quarter. They were, in descending order: the US, China, the UK, France, Australia, South Korea, Hong Kong, Japan, Canada and the United Arab Emirates, the commission’s data showed.
In the first quarter, the companies raised their US exposure by NT$464.59 billion to NT$9.6 trillion, as they increased their investments in that market, the commission said.
Overall, their US exposure accounted for 35.08 percent of total overseas exposure, hitting a new high, it said.
The companies also saw their exposure to China rise to NT$2.21 trillion at the end of March, up from NT$2.19 trillion at the end of last year, as a decline in investment in China was offset by increases in lending and interbank transactions there, the commission said.
However, the ratio of their exposure to China compared with all overseas exposure dropped from 8.33 percent to 8.07 percent, an all-time low, it said.
Financial holding companies’ combined exposures to the UK, France, Australia, South Korea and Hong Kong were each above NT$1 trillion last quarter, while their combined exposure to Japan had been accelerating over the past few quarters and hit NT$987.63 billion at the end of March, the commission’s data showed.
The increase in exposure to Japan indicated a shift in companies’ appetite for the East Asian market following Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) launch of new wafer fabs early this year, the commission said.
TSMC expanding its footprint in Japan has prompted several Taiwanese banks, including E.Sun Commercial Bank (玉山銀行), Taishin International Bank (台新銀行) and Bank of Taiwan (臺灣銀行) to set up new branches or representative offices in Japan, the commission said.
Compared with the first quarter of last year, financial holding companies’ overall exposure to the US at the end of March increased the most year-on-year, by NT$1.12 trillion, followed by an increase of NT$169.12 billion in exposure to Australia and NT$129.89 billion to South Korea, it said.
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
RSS