Crawling towards reform

Taiwan Special Report

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Taiwan is, in many ways, in robust financial health. Its fourth-quarter current account surplus last year was $6.4 billion, while its foreign exchange reserves stood at $266 billion at the end of December. And it appears to have drawn a line under the 2004 bond-fund crisis.

But the country's financial markets, while developed in some areas, still face structural and regulatory issues. And domestic investors, particularly on the fixed-income side, see a lack of investment opportunities.

While s

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