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SITCA: cross-strait service trade deal helps expand market
Taiwan News, Staff Writer
2014-04-02 02:41 PM

The Securities Investment Trust & Consulting Association of the R.O.C (SITCA) held a press conference Tuesday. People representing the securities investment trust companies called for the completion of legal procedures of the Cross-Strait Agreement on Trade in Services as soon as possible to facilitate the creation of a new market by domestic asset management companies and their fight for new business opportunities worth several trillion. Industry heads said Taiwan’s investment trust companies will be granted a greater market access to Chinese market according to the service trade pact.

SITCA chairman Henry Lin stated he would like to see the service trade agreement have an open and rigorous review process and remedies provided to potentially impacted industries. However, to investment trust companies, approval of the service trade agreement definitely has “more advantages than disadvantages.”

Lin indicated, with the rapid growth of the mainland economy, international investment institutions are bullish on the wealth management business opportunities of the RMB. Recently, France acquired a RQFII quota of RMB 80 billion. In the past, Singapore and London both received quotas of RMB 50 billion and RMB 80 billion, respectively. If the service trade agreement is approved, Taiwan will be able to acquire an RQFII quota of hundreds of billions of RMB that is second only to Hong Kong.

Company representatives attending the conference Monday included Cathay Securities Investment Trust president Chang Yung-chuan, Yuanta Securities general manager Liu Tsung-sheng, and Fuh Hwa Securities Investment Trust general manager Chou Hui-chi. Chang, Liu, and Chou all stated at the conference that the deal is also a key for Taiwan to vie for establishing the offshore RMB asset management center. SITCA chairman Lin said the deal might help local companies boost their asset management business, seeing a tenfold increase from current level.

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