Global Banks Shift Away From Hong Kong for Expansion into Taiwan

U.S. securities firms are considering an expansion in Taiwan while other international banks plan to start new operations. Unprecedented political turbulence in Hong Kong after more than a year of anti-government protests is now in the cross-hairs of a broader fight between the U.S. and China.

Financial professionals from Hong Kong reinvigorate an economy grappling with a peaking population, a shortage of skilled workers and shrinking exports. Businesses operating in Hong Kong are worried about the impact of the controversial national security law, according to a survey released last week by the American Chamber of Commerce. Taiwan plans to relax some rules to raise its competitiveness, such as expediting a policy to allow domestic companies to open offshore banking accounts to win back Taiwanese capital from tax havens, Huang said. He would also align the island’s financial regulation to international standards to lure foreign investment.

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