Despite escalating fears over an epidemic of the Covid-19 coronavirus, the exposure of Taiwan’s financial sector to mainland China as of the end of January still rose from a month earlier, according to the Financial Supervisory Commission (FSC).
Data compiled by the FSC showed that exposure extended by Taiwanese financial firms to mainland China hit NT$1.95tn ($64.36bn) at the end of January, up NT$21.72bn from a month earlier, according to a Central News Agency report.
The FSC attributed the increase to the local banking industry’s investments in mainland China that boosted the industry’s exposure there by NT$16.52bn from a month earlier to NT$1.66tn.
As for the insurance industry, the FSC said, the exposure of Taiwanese life insurance firms to mainland China rose by NT$2bn from a month earlier to NT$262.3bn, while the exposure of non-life insurers in Taiwan stayed little changed at NT$4.4bn.
The FSC said the increase in exposure of Taiwanese life insurers in January was largely because the island’s China Life Insurance injected about NT$5.4bn into Shanghai-based CCB Life Insurance in the Chinese firm’s fund-raising activity last month.
In addition, the local life insurance industry raised its Chinese yuan deposits during the month, the FSC said.