Taipei: Taiwan will intensify its initiative to become an Asian asset management center as it seeks to turn its industrial strength into financial clout and enhance the country's competitiveness, President Lai Ching-te said Friday. Speaking at a financial development forum in Taipei, Lai emphasized the government's commitment to adjusting and easing financial regulations to provide financial institutions with greater opportunities to grow the asset management business. However, he did not provide specific details on these regulatory changes.
According to Focus Taiwan, the initiative aims to internationalize Taiwan's financial markets and establish the country as a crucial platform connecting industries with global capital. President Lai highlighted Taiwan's industrial capabilities and stressed the importance of transforming this strength into financial power and national competitiveness. The financial sector in Taiwan has been thriving, with record or near-record profits reported in 2024 and 2025, and combined profits exceeding NT$1 trillion (US$31.5 billion) for the first time in 2024.
The country's economy is anticipated to grow by 11.05 percent this year, with financial sector profits projected to surpass those of the previous two years. President Lai noted the achievements of the government's asset management initiative, reporting that the financial sector's assets under management (AUM) reached NT$46 trillion as of June, marking an increase of about NT$14 trillion since the initiative's launch in 2024.
While the president did not specify any government measures responsible for the AUM growth, the increase could be attributed to soaring share prices as investors capitalize on the AI sector. The Taiex, Taiwan's benchmark stock market index, surged 59.2 percent in the first half of 2026, driven by tech stocks with strong positions in AI, following over 20 percent increases in 2024 and 2025. TSMC, the world's largest contract chipmaker and a major player in Taiwan's market, saw its shares rise 306 percent by the end of June from the start of 2024, fueled by the AI boom.
Looking ahead, President Lai outlined the next phase of the initiative, focusing on deepening asset management, strengthening capital markets, and expanding cross-border financial services. He emphasized the importance of the Taiwan Innovation Board, which clusters innovative listings and recorded a total trading value of NT$125.1 billion in the first half of the year, a 338 percent increase from the previous year.
President Lai envisions Taiwan developing the board into an Asian fundraising platform for startups and attracting more international companies to list in Taiwan, with the goal of creating an "Asian Nasdaq." He also mentioned plans to draw on the experience of a pilot asset management zone in Kaohsiung to establish regulations for cross-border finance, family offices, and innovative financial products, with successful measures potentially being expanded nationwide.
Additionally, the Financial Supervisory Commission is drafting a special law on financial markets and asset management development to provide a stable and predictable legal framework, further supporting Taiwan's ambitions to become a leading asset management hub in Asia.