Overseas Exposure Up Nearly 5% QoQ, Setting New Record
FSC statistics show that in Q3 this year, financial holding groups' overseas exposure reached NT$33.0373 trillion, up 4.95% QoQ and 16.35% YoY, hitting a new record high. Since Q2 2015, the FSC has disclosed financial holding groups' domestic and overseas exposure statistics quarterly. Overseas exposure is the sum of interbank placements, net loans and net investments, converted into NT dollars, with figures often affected by exchange rates. As of the end of September, net investments of NT$23.69 trillion, accounting for 71.7%, were the largest component, followed by net loans of NT$7.1 trillion, accounting for about 21.5%, and interbank placements of about NT$2.2 trillion, accounting for 6.7%. The quarterly change was mainly driven by interbank placements, while net loans and net investments also grew.
U.S. Remains Top, Share Hits New High
The top 10 exposure countries in Q3 were the United States, China, Japan, Australia, France, the United Kingdom, South Korea, Hong Kong, Canada and Singapore. U.S. exposure reached NT$11.7 trillion in Q3, up 18.11% YoY, a new high, remaining the largest overseas exposure country for financial holdings for 46 consecutive quarters, mainly reflecting mature U.S. capital markets and long-term financial industry investments in U.S. securities and government bonds. The U.S. share of total overseas exposure rose to 35.59%, a record high. China remained the second-largest exposure country, with Q3 exposure falling below NT$2 trillion to NT$1.99 trillion, down 0.87% QoQ and up 2.48% YoY, with its share falling to 6.05%, a new low. The quarterly change was mainly due to a 5.7% decrease in net loans, while interbank placements and net investments increased slightly.
Japan Lending Surges, Singapore Returns to Top Ten
Japan first entered the top three in Q1 this year and remained firmly in third place in Q3, with exposure reaching NT$1.85 trillion, up 44.89% YoY, the highest growth rate, narrowing the gap with second-ranked China to 1452 hundred million yuan. Compared with the same period last year, growth was mainly driven by a 275% YoY increase in net loans, followed by 29.84% growth in net investments, while interbank placements declined. TSMC's expansion in Japan in recent years has driven closer Taiwan-Japan trade ties.
Singapore, the new face in the top 10, had mostly ranked around 12th-13th in the past, moving from 12th in Q2 to 10th, re-entering the top 10 after more than 11 years, the last time being Q2 2015. Singapore's exposure reached NT$693 billion, up 41.35% YoY, the second-highest growth, mainly driven by a 154% YoY increase in interbank placements, with net loans and net investments also growing 40% and 20% respectively. Australia grew 25.01% YoY, ranking third in growth.