A Research of The Offshore Fixed Income Business Developed by Domestic Securities Firms

• Main Author: 黃信昌
• Other Authors: ShyanYuan Lee
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/72126831017071563969

碩士 === 國立臺灣大學 === 財務金融學研究所 === 91 === The Taiwan capital markets had been continuously progressed to tap the international investment communities in the past ten years. Also the domestic securities companies had developed certain infrastructure of international business operations by the permission of authorities that intended to build Taiwan as one of the major Asian financial centers. Particularly the dramatic developments of the bond markets of Taiwan further increase the chances to enable Taiwan to be an important debt-related fund-raising/investment market in Asia. No wonder the domestic market practitioners define the offshore debt business as the key to achieve the goal aforementioned. This thesis intends to look for the flaws and limitations from the current regulations and practices, and also aims to propose possible solutions via referring to domestic commercial banking operations as well as practices in the United States, Hong Kong and Korea. According to the research, the offshore debt-related business operations of domestic securities companies are regulated by: 1) “Criteria Governing the Offering and Issuance of Overseas Securities by Issuers” for the primary market; 2) “Rules Governing Securities Firms Engaging in Consigned Trading of Foreign Securities” for the brokerage business; 3) “Rules Governing Securities Firms” for dealing business of offshore subsidiaries. Besides, Central Bank of China also regulates the offshore operations of securities companies. Due to the aforementioned restrictions, the scale of the offshore operations of the domestic securities companies is far smaller than that of foreign investment banks. Furthermore, the scale of the offshore operations of the domestic securities companies even falls behind that of the “Trust of Designated Proceeds” and “Offshore Banking Unit” run by commercial banks. The conclusions of this thesis suggests that the essences of dual listing in the United States, the infrastructure of financial clearance in Hong Kong, and the central depository services in Korea can be followed. In order to facilitate the offshore operations of the domestic securities companies, the key is to build a good infrastructure of the debt markets. This surely includes the clear-cut onshore/offshore markets, the complete exchange traded and over-the-counter systems, the unified surveillance of authorities, a well-developed clearance system, and a friendly taxation system.