Q&A

Q&A:

Q1:
Dear Mr. Huang, As you've mentioned, Taiwanese firm owners seem to be more conservative when directly investing and managing operations in foreign nations (especially the ones with language barriers). From an investment banker and financial advisor's perspective, what is the most important concept you introduce to your Taiwanese clients? How do you support them to get over this mental barrier? Thank you. Mike
由Mike於 2010/12/12張貼在台灣宏觀－「TAIWAN OUTLOOK」

Q2:
Dear Mr. Huang, How do you think Taiwanese financial holding firms or just boutique investment banks in general can take advantage of the unique Sino-Taiwan relationship as well as Taiwan's early exposure to the foreign capital market compared to that of China, in order to compete with Wall Street Bulge Bracket banks such as Goldman Sachs, Morgan Stanley and UBS's operations in China? Thank you. Sincerely, Mike
由Mike於 2010/12/12張貼在台灣宏觀－「TAIWAN OUTLOOK」

Q3:
Why is that we observe more Taiwanese firms coming back to Taiwan for their IPOs rather than staying in China or Hong Kong? - Mike
由Mike於 2010/12/11張貼在台灣宏觀－「TAIWAN OUTLOOK」


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Dear Mike, Sorry for my very late reply.

A1:
The lessons for Taiwanese firms in managing overseas operations are (1) train and utilize local talents; (2) establish central management and report system; (3) deveop global thinking and mindset; (4) develop a strong corporate culture and core value; and (5) constantly enhance mutual communication and understanding.

A2:
The opportunity for boutique investment bank is tremendous in the Greater China Region. Taiwan and China don't understand each other and need middleman to bridge the distance. In additon, ECFA paves the road for further cross-strait investments.

These golden deal opportunities are too small for Goldman Sachs and Morgan Stanley. Also, there Taiwan and China office don't talk or collaborate with other. I set up FCC Parnters as a boutique merchant bank in August exactly because of that.

A3:
Taiwan Stock Exchange did a good job in attracting Taiwanese firm to go back to Taiwan for IPO. Home is always better. Hong Kong is only for big market cap players and not suitable for high-tech companies. China A shares takes too long to wait and there are a lot of uncertainties.

However, TWSE has been extremely slow in approving IPO from overseas Taiwanese issuers. So far only 6 out of 67 got listed during the last two years. Taiwanese issuers might change to other bourses if the speed of TWSE approval continues to be slow.

Best regards,

CY