The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
Details of the new scheme have yet to be clarified. But the scheme will meet a long anticipated goal among Taiwanese financial institutions to invest in Hong Kong and mainland stocks.
Xav Fung, research manager at Lipper in Taipei, says equity funds investing in local financial stocks have performed well in anticipation of deregulation; finance stocks gained 7.03% in January, the only sector to post gains amidst a general sell-off on the Taiwan Stock Exchange.
ChangÆs comments followed the Democratic Progressive Party (DPP) candidate Frank HsiehÆs pledge to end all China-related investment restrictions on February 1, 2008. In his pitch, he says the investment ceiling will be removed upon his election and Taiwanese banks will be allowed to expand in mainland China. Previously, mainland-related investments, including those listed in Hong Kong, were restricted to 40% of a bank's total assets under management.
HsiehÆs opponent Ma Ying-jeou of the Chinese National Party, or the Kuomintang (KMT), has also expressed a similar intention to ease cross-strait investments and trades.
Taiwanese investment managers have suffered from missing out on access to the booming mainland economy because of Taipei's investment caps. The China A-share market measured by the CSI 300 index gained 165.55% in 2007, although shares have subsequently fallen nearly 15% this year.
Partly in response to the investment restrictions, Taiwan's banks set up overseas operations that could offer mainland-related investments to clients. Fubon Bank acquired Hong Kong's International Bank of Asia in 2004. Polaris Financial Group, which runs the island's fourth-largest fund company, has a securities brokerage arm in Hong Kong.
Of the insurance companies, Cathay Financial, the largest in Taiwan, has an insurance-related JV with China Eastern Airlines in Shanghai, while Shinkong Financial has received Beijing's approval to form a similar JV with Hainan Airlines. Even small players like Taiwan Life Insurance are making inroads, with Taiwan Life investing $33 million in a JV with Xiamen C&D.
Analysts expect more direct investments to follow the FSC's easing rules for financial companies.
Regional institutions’ internal investment managers outperformed their external peers, underlining that they are just as vital as modern asset allocation strategies.
AsianInvestor describes why we chose the top funds across a series of key asset classes.
The RM82.64 billion ($20.6 billion) Malaysian Hajj fund, which recently completed a restructure, is looking to diversify globally but remains cautious of risky assets.
Mega players Nippon Life and Dai-ichi Life are looking for opportunities in higher-yield single-A US corporate bonds, which offer more appealing yields than stagnant domestic offerings.