By Crystal Hsu / Staff reporter
Taiwan’s artificial intelligence (AI) boom is reshaping the financial sector, rewarding firms tied to capital markets and corporate expansion while exposing weaker players to the fallout from China’s slowdown and persistent weakness in traditional industries.The gap is expected to widen through this year as AI investment continues to fuel stock-market activity, corporate lending and insurance demand, Taiwan Ratings Corp (中華信評) said in its midyear credit outlook.Meanwhile, leasing companies serving traditional industries are likely to face growing pressure as weak borrowing demand and excess capacity weigh on business conditions, the local unit of S&P Global Ratings said.
The Taiwan Ratings Corp logo is pictured at a company office in Taipei on Dec. 16 last year.
“Taiwan’s financial sector remains on a strong earnings trajectory this year, supported by robust exports and an active equity market,” Taiwan Ratings credit analyst Effie Tsai (蔡怡君) said at a news conference on Thursday. “However, the earnings gap among subsectors is becoming increasingly pronounced.”Securities firms are expected to be the biggest beneficiaries of the AI-fueled rally. Taiwan’s benchmark stock index has climbed above 45,000 points, driving record trading volumes and a surge in initial public offerings, Tsai said.
