Taiwan Urges $630B Asset Management Growth, BlackRock Faces ETF Competition
BLK•Taiwan’s Financial Supervisory Commission is urging its $630 billion asset management industry to scale up by directing NT$1 trillion insurers to award more mandates to local managers, backed by tax breaks and private equity rule changes. BlackRock and peers are expanding in Taiwan’s ETF market, raising competition for local managers.
1. Taiwan’s Growth Push for Asset Managers
Financial Supervisory Commission Chairman Peng Jin-lung said Taiwan’s $630 billion asset management industry needs larger firms to compete globally. The FSC is urging domestic institutions, including the NT$1 trillion life insurance sector, to award more mandates to local managers.
2. Domestic AUM Gaps and Regulatory Measures
Taiwan currently has eight asset managers with over NT$1 trillion under management, led by Yuanta and Cathay with more than NT$2 trillion each, compared with Hong Kong’s $3.3 trillion industry. Regulators are introducing tax breaks and private equity rule changes to bolster scale and attract capital.
3. Impact on BlackRock and Global Firms
Global asset managers such as BlackRock are expanding their ETF offerings in Taiwan, raising competition for local players. Peng’s strategy aims to retain domestic wealth, draw foreign investment and position Taiwanese managers to win mandates overseas.
