F-shares make a comeback on TWSE action
By Kathryn Chiu, The China Post
April 30, 2014, 12:01 am TWN
TAIPEI, Taiwan -- Shares of foreign-registered firms listed in Taiwan — dubbed F-shares - rebounded on Tuesday after the Taiwan Stock Exchange (TWSE) had launched an audit in the Chinese plants of an F-share company. The shares have been encountering heavy short-selling recently.
The F-share under heavy selling pressure over the last four sessions was Asia Plastics Recycling Holding (亞塑再生), under the trade name of F-APR. During the four sessions, as of Tuesday, F-APR shares have accumulated a 27.73 percent loss and closed at NT$ 64.9.
On April 24, California-based Glaucus Research Group published a research report in which they accused the Taipei-listed Chinese foam-rubber recycler of padding both its earnings and assets.
The rumor stoked heavy selling pressure on F-shares and induced a retreat across the segment. However, F-shares went back to positive territory after TWSE yesterday announced that it had sent a dispatch of auditors to investigate APR's operation in Jinjiang City in Southeastern China.
F-share segment yesterday stopped a losing four-session streak, with six stocks gaining nearly 7 percent, the maximum daily upper limit in Taiwan equity market.
According to TWSE data, shares of China Communications Media Group (中國通訊多媒體), AirTAC Internaional Group (亞德客國際) and Chlitina Holding (麗豐) — the three most expensive F-shares — yesterday closed up 6.23 percent, 1.82 percent and 1.15 percent at NT$358.11, NT$336 and NT$265, respectively.
F-TPK (宸鴻), touch panel supplier to Apple Inc's smartphone and tablet product lines, yesterday closed up 6.25 percent at NT$238.
TWSE president Michael Lin (林火燈) yesterday reiterated that F-share firms are subject to stricter reviews than domestic companies and the Taiwan market adopts tighter requirements than its peers overseas.
Lin told the United Evening News that he remains confident in F-shares and so should investors, stressing that the correction will prove a short-term twist.
Glaucus Research yesterday published another report admitting to short-selling F-APR, while defending the reliability of the report published four days ago.