A proposal by Taiwan's Ministry of Finance to scrap a 0.1% transaction tax on corporate bond issues might seem like a welcome and long overdue boost to the local market. However, local bankers are unanimous in claiming that the measure is at best half-hearted and will have no real impact unless it is followed by more comprehensive changes to bond legislation.
Restrictions on accessing direct bank finance and the belief that funding will be difficult to secure through other means, should mean corporates will be looking towards bond issues, but so far this year, the market has been relatively quiet. On the face of it, the ministry's move should encourage companies to try...
