TAIPEI (Taiwan News) — Overseas exposure of Taiwan’s financial holding companies climbed to a record NT$30.62 trillion (US$968.39 billion) in the first quarter, the Financial Supervisory Commission said Sunday.
The FSC said overseas exposure rose 5.13% year-on-year and 2.99% quarter-on-quarter, boosted mainly by net lending, per CNA. The NT dollar’s 1.69% depreciation during the period also lifted the Taiwan dollar-denominated value of foreign assets.
The US remained the largest overseas exposure market for the 44th consecutive quarter at NT$10.68 trillion, accounting for 34.89% of the total, per Liberty Times. However, its share continued to decline even as exposure edged up 3.15% year-on-year.
China ranked second at NT$1.95 trillion, down both quarterly and annually, mainly due to declines in investment and interbank placements. Hong Kong, South Korea, and other regional markets followed in the rankings.
Japan emerged as the biggest mover, rising to third place for the first time after climbing from sixth in the previous quarter. Exposure surged 41.46% year-on-year to NT$1.58 trillion, driven primarily by lending growth.
The FSC said overseas exposure is calculated from interbank placements, net lending, and investment positions, and is affected by exchange rate movements when converted into Taiwan dollars.
Among the top 10 markets, Japan led annual growth, followed by Australia and South Korea. France and the UK slipped in ranking compared with the previous quarter as exposure shifted across markets.
Industry sources said Japan’s rise reflects deepening economic ties, including TSMC’s expansion there and broader supply chain relocation, CNA reported. They added that demand for construction financing and trade-related funding has increased alongside Taiwanese corporate investment in Japan.
