Foreigners permitted to take secured loans

Hi,

I saw this article yesterday in Taipei Times, http://www.taipeitimes.com/News/biz/archives/2006/11/15/2003336494.

Does anyone have any more information about this? Any other links to confirm? Or any lenders that have already release any loan products?

Regards
Michael

I remember reading this article a few days ago and the qualifier and important sentence for you, was that that the loans were for corporations, not for individuals.

Here is the last sentence of the article.

Tsai Hsian-chung (蔡憲宗), executive vice president of the state-controlled First Financial Holding Co (第一金控), said the new rule would allow foreign institutional investors to step up investment in Taiwan, boosting the stock and housing markets. But granting loans to individuals would be more difficult in light of greater risk.

Hi,

However, the sentenance…

Clearly states that the target market will be “people”, as well as “institutional investors”.

And the last part of the last sentenance…

Just underscores that there is a greater risk of default on lending to individuals as compared with institutions, however it does not deny that lending is to be opened to “people” (individuals).

I’m curious to know if/when we’ll see these new financial products (loans) being advertised, and where?

Regards
Michael

I saw that other sentence and I still think the last sentence is a more accurate reflection of the status of loans for foreigners in Taiwan. I think all of this was about QFII’s Qualified Foreign Institutional Investors. This is actually a big deal for them and the Taiwan stock market since now they can do margin trading, I suppose that is what it is about.

Anyway, regarding when you might see these new financial products being advertised? I wouldn’t hold my breath, they most likely will never come. Didn’t you know that even locals must have a guarantor for loans?