Unveiling of the Kaohsiung Asset Management Zone Commemorative Plaque
In a significant move to boost its financial sector, Taiwan has launched a trial asset management zone in Kaohsiung as part of its broader plans to establish itself as an Asian asset management hub. This initiative, unveiled in July 2025 at the Asia New Bay Area, is a collaborative effort between the Financial Supervisory Commission (FSC), the Kaohsiung City Government, and 48 financial institutions.
The trial zone, now home to 23 financial institutions—14 banks, 6 securities investment trust companies, and 3 insurance companies—has seen a surge in activity since its inception. These institutions have been granted permission for pilot operations within the zone, with the Kaohsiung City Government offering incentives such as rent discounts, subsidies, and administrative assistance, while the FSC provides policy incentives for firms establishing operations there.
Since September 2024, the FSC has eased 28 regulations related to private banking and wealth management, raising the number of banks approved to offer wealth management for high-net-worth clients to 18. This deregulation, coupled with the launch of the Taiwan Individual Savings Account and plans for an Asian version of NASDAQ, has contributed to a more vibrant market.
The hub aligns with Taiwan's Trillion NT Dollar Investment National Development Plan, launched in December 2024, aiming to attract both domestic and foreign funds for infrastructure and industrial development. It complements Taiwan’s strategic focus on trusted industries like semiconductor and AI, bolstering its competitive position in global finance.
One of the key developments within the hub is the partnership between Cathay United Bank, Taiwan’s leading bank in wealth management, and Avaloq. This collaboration marks the establishment of the first private banking operations within the Kaohsiung hub, expanding Taiwan’s onshore and offshore private banking sectors. The hub enables institutions to provide diverse offerings such as active and passive ETFs, family office consultancy, and high-value insurance products.
In summary, Taiwan's hub development involves holistic policy support, infrastructure incentives, and regulatory reform focused on Kaohsiung’s trial zone to foster a competitive asset management ecosystem that serves regional and global investors. Over the past year, 28 regulations have been eased, and the Kaohsiung City Government has signed memorandums of understanding with 54 financial institutions to operate in the zone. The future of Taiwan's financial sector looks promising as it continues to forge ahead in its journey towards becoming an Asian asset management hub.
The trial asset management zone in Kaohsiung, a collaborative initiative between the Financial Supervisory Commission (FSC), the Kaohsiung City Government, and 48 financial institutions, has expanded since its inception to house 23 institutions, including banks, securities investment trust companies, and insurance companies. The FSC's easing of 28 regulations related to private banking and wealth management has attracted more players in the business, banking, and insurance sectors, suggesting a thriving market within this hub.
