Taiwan to be investors' '1st choice' in Asia

Thanks to the signing in Chongqing, China on June 29, more foreign enterprises will launch investment and raise funds in Taiwan, the local bourse predicted.

The prices of Taiwan depositary receipts (TDRs) issued by 14 foreign companies has risen by an average 18 percent from their underwriting prices since the TWSE announced in 2009 that attracting more overseas companies to list in Taiwan by issuing TDRs would be its major task this year, it said.

TDR prices fell an average 1 percent in the first half of the year, far lower than the overall local market drop, TWSE officials said.

It proved that even in global recession, TDRs were still popular among local investors, they added.

Taiwan stocks were seen relatively strong in the Asian market in the first half of the year as the global economy was affected by the European debt crisis as well as increasing unemployment and a slow recovery in the U.S.

TWSE statistics showed the Taiwan Capitalization Weighted Stock Index, the key barometer of the local stock market, recorded a drop of 10 percent in the first six months.

The fall resembled drops of between 6 percent and 10 percent on the Nasdaq, Dow Jones and S&P 500 in the United States, but better than the Nikkei's 11 percent drop, the 27-percent drop in Shanghai and the 21-percent drop in Shenzhen, China, TWSE officials said.

The ECFA aims to create a new era in cross-strait trade by slashing or gradually removing barriers to bilateral trade and investment.

Subscribe to The China Post and save 25%. Click here

PrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email