New rules on recognising Formosa bonds as part of Taiwanese insurers' overseas assets are expected to impact their offshore investment strategies.
Henry Lin, president of Fubon Asset Management and Sitca chairman, expects some 20 ETFs and up to 30 multi-asset funds to be launched in Taiwan this year, including several by his firm.
Taiwan fund houses Yuanta and Fubon are ready to launch inverse and leveraged ETFs tracking Japan and the US equity indexes, in a bid to capture growth of the island’s ETF market.
Taiwan fund house Yuanta SITC is set to launch the ETFs, which track China’s CSI300 index, on the island in May. But concerns have been raised over the risky products' availability to retail investors.
Optimism has greeted the arrival of two landmark products from Yuanta, with firms such as Fubon set to follow suit, while Hong Kong is seen as some way from approving such ETFs.
Taiwan is seeking to build its status as a renminbi investment hub, such as by launching dual-currency trading counters and considering relaxing rules such as the RMB conversion cap.