Nine foreign fund firms are included in this year's preferential scheme, but is it discouraging product innovation and hurting investor interests?
Foreign fund houses' efforts to develop truly local businesses are starting to pay off; nine of the top 20 onshore products in Taiwan by net new flows this year were run by overseas firms.
AllianceBernstein, Allianz Global Investors, Eastspring, Franklin Templeton, JP Morgan AM and Schroders are tipped to benefit strongly from their new awards under Taiwan's 'deep-cultivation plan'.
The largest offshore fund house in Taiwan is finding it challenging to expand into the local market, said chairman Derek Yung.
The UK fund house has jumped on Asia's multi-asset bandwagon by poaching Irene Goh from AllianceBernstein, and expects to add two more to her team. Insurers are a key target.
AllianceBernstein plans to hand back the RQFII quota it uses to buy Chinese fixed income assets, underlining the growing obsolescence of the cross-border scheme.