Taipei, July 16 -- Taiwan's financial exposure to China dropped sharply by the end of May, as concerns grow over China's slowing economy and political instability, Focus Taiwan reported.

The Financial Supervisory Commission (FSC), Taiwan's top financial regulator, said on Monday that the total exposure of the island's banking, insurance and securities sectors to China fell by NT$201.3 billion, or nearly 20 per cent year-on-year, to NT$828.39 billion (US$28.25 billion).

Focus Taiwan noted that this figure also marked a NT$48.56 billion drop compared to April. Although the FSC did not confirm if currency changes played a role, officials said the decline was mainly due to reduced risk-taking as China's economy and property market remain un...