TAIPEI: A leading Taiwan financial expert says the island should be working to attract strategic investment from the mainland, much more so than signing financial memorandums of understanding (MOU) allowing qualified direct institutional investors (QDIIs) to trade on the Taiwan bourse.
C Y Huang, co-founder and president of Polaris Capital Asia, made the comment Friday during a speech to the 2009 International Economic and Finance Forum. The two-day forum, opened on Thursday at the Taipei International Convention Center. Nobel laureate Paul Krugman is among the featured speakers at the event.
Huang said opening Taiwan to mainland investment means attracting strategic investors to Taiwan, while QDII investors would focus on financial gains, Huang said. Strategic investment would have a much greater effect on Taiwan's economy, he said.
Taiwan stocks have experienced marginal gains in past weeks, apparently in expectation that mainland funding will deliver a shot in the arm for the sagging equities market.
By joining hands with strategic investors across the Straits, Huang said, Taiwan companies could create synergy and open up international markets.
There are immediate opportunities in some Taiwan markets, "such as tourism", Huang added. Also, Taiwan companies would be able to attract mainland investors with its management and technology while mainland partners offer the advantage of massive markets, abundant capital and supportive government policies, he said.
As for the financial sector of Taiwan, Huang named positive factors working to Taiwan's benefit. These include well-balanced industries, the receptivity of individual investors to financial products, the quality of financial talent and the creativity of supervisory organizations that can assist Taiwan to become a regional financial center.
(HK Edition 05/16/2009 page1)