Our view of Taiwan's banking and financial services sector is largely positive across the four sub-sectors that we cover -banking, insurance, asset management, and stock exchanges. Despite already being well developed, the financial services sectorcontinues to offer plenty of upside potential and investment opportunity for investors. Furthermore, it is well regulated and ranksfavourably in terms of ease of doing business and resolving insolvency, albeit down slightly from 2017 in this regard - according toWorld Bank research. While largely dominated by domestic players - in addition to companies from the mainland - Taiwan's financialservices sector is open to overseas players and treats them equally; two factors which have seen the number of overseas firmsactive in Taiwan and publicly listed across the two main Taiwanese exchanges increase over recent years. In fact, the TPEx hasstarted making moves to actively promote listing from overseas, with a focus on Malaysia. Taiwan's dubious relationship with Beijingis the main long-term risk facing the island owing to the potential for conflict between the two Chinas. Our core view continues tobe that further political integration is likely and the status quo will largely prevail.