Taiwan Financial Sector’s China Exposure Hits Second-Lowest Level; Securities Firms Cut Nearly 40%
Taiwan’s Financial Supervisory Commission continues to track China exposure across the banking, insurance and securities industries as a key gauge of cross-border financial risk. Slower Chinese economic growth, the prolonged property-debt crisis and rising geopolitical uncertainty across the Taiwan Strait have prompted Taiwanese financial institutions to gradually reduce their investment and lending positions.
FSC data showed the three industries’ combined exposure to China fell to NT$763.8 billion as of March 31, 2026, the second-lowest level on record, with banks still accounting for the largest amount. Securities firms made the sharpest cuts, reducing their exposure by 38.66% from a year earlier as they continued to scale back positions in the Chinese market.
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The history behind this eventTaiwan FSC Says Financial-Sector Exposure to China Edged Up in February 2026
The banking, insurance and securities industries’ lending and investment exposure to China is a key gauge of cross-border risk in Taiwan’s financial system. As volatility in China’s economy and financial markets has intensified in recent years, the Financial Supervisory Commission has continued to monitor that exposure, while financial firms have remained broadly cautious and conservative.
FSC data showed the three industries’ combined exposure to China stood at NT$781.255 billion at the end of February 2026, up by nearly NT$20 billion from the end of January, mainly because of the renminbi’s appreciation and gains in Chinese stocks. Despite the slight monthly rebound, exposure was still down by more than 13% from the same period in 2025, leaving the medium- to long-term downtrend intact.
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