Taiwan urges asset management industry to scale up to compete regionally

Taiwan’s Financial Supervisory Commission chairman Peng Jin-lung urged the country’s asset management industry to develop multiple large-scale firms to compete internationally as a regional financial hub. Taiwan’s asset management market is valued at about US$630 billion, far smaller than Hong Kong’s US$3.3 trillion industry ^{[1, 2, 3]}.

Peng told multiple interviews and meetings from May 21 to May 25 that if Taiwan fails to cultivate several sizable asset managers, it will struggle to compete globally and promote Taiwanese investment opportunities worldwide. "If Taiwan does not develop multiple asset management firms with sufficient scale, it will be difficult to compete internationally," Peng said ^{[1, 2, 3]}.

Taiwan aims to leverage its global technology leadership and the strong capital base of domestic financial groups to accelerate industry growth. The commission is encouraging institutional investors and insurance companies in Taiwan to allocate more funds to local asset managers to quickly build scale ^{[1, 2]}.

Currently, eight Taiwanese asset managers hold assets over NT$1 trillion. Yuanta and Cathay Securities Investment Trust lead with more than NT$2 trillion each. International firms such as BlackRock, JPMorgan Chase, and AllianceBernstein are expanding their presence in Taiwan’s exchange-traded fund market, creating competition for local firms ^{[1, 2]}.

Peng has met with top global asset managers, who responded positively to expanding in Taiwan ^[1]. The move aligns with Taiwan’s broader goal to strengthen its financial sector alongside its semiconductor industry leadership, aiming for greater economic resilience amid geopolitical tensions with Beijing ^{[1, 2]}.

In October 2025, Cathay Financial Holding announced plans to progressively entrust over NT$7 trillion in assets to its asset management subsidiaries, reflecting efforts to consolidate scale domestically ^[2].

The Financial Supervisory Commission continues to push for policies that will build the size and global competitiveness of Taiwan’s asset management industry.