DOI: 10.5176/2251-1938_ORS26
Authors: Yi Chun Kuo and Pei Yin Liu
Abstract:
On August 30 2011, Taiwan Financial Supervisory Commission announced that banks in Taiwan can serve their customers RMB’s business on the service of their offshore banking unit (OBU). After that, Taiwanese businessman in China can financing RMB from OBU account and operate by OBU’s Renmibi’s business, which is a RMB finance channel for Taiwanese businessman. The foreign direct investment and international trade of Taiwanese businessman in China are important part of Taiwan’s economics, which create huge amount of cash flow between Mainland China and Taiwan. Due to the financial crisis happened in 2008, the fluctuation of exchange rate caused serious problems to import and export enterprises. RMB is relatively stable than other currency and being preferred by Taiwanese business for their financial risk controlling. The main purpose of this study is to survey the impact of such policy deregulation and try to know will Taiwanese businessman change their financing behavior after the deregulating of OBU’s RMB business and how will they do to handle the financing and cash flow for the investment and trade in China.
Keywords: Financial behavior; Renminibi; offshore banking unit(OBU); financing behavior; Taiwanese businessman
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