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Taiwan Shares Rebound 1.8 Percent
Friday June 9, 4:48 am ET
Taiwan Shares Rebound 1.8 Percent Despite Political Uncertainties, Outlook for U.S. Economy
TAIPEI, Taiwan (AP) -- Taiwan shares rebounded Friday after they plunged earlier this week on uncertainties about the domestic political situation and the outlook for the U.S. economy.
The Weighted Price Index of the Taiwan Stock Exchange gained 112.82 points, or 1.8 percent, to 6,444.63, but it ended 7.4 percent lower for the week as a whole.
Taiwan's main index plunged 627.83 points, or 9 percent, in the previous four sessions, as markets fell globally on concerns U.S. growth may stall on higher interest rates and lower U.S. demand.
Domestically, an opposition campaign to oust President Chen Shui-bian over insider-trading allegations against relatives aggravated investors' nervousness.
"The market hasn't fallen so much in such a short period before," said Alex Huang, an assistant vice president of Barits International Securities. "Today's rebound was quite natural. It is the first signal the market may have reached a bottom."
Index heavyweight Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker by revenue, gained 4.7 percent at 58.5 New Taiwan dollars, after falling 10.6 percent over the previous four sessions.
TSMC's smaller rival, United Microelectronics Corp., rose 2.1 percent to NT$19.2, after Thursday's fall of 1.2 percent.
Mobile phone maker Compal Communications surged by the 7 percent daily limit to NT$162.
AU Optronics, the world's third-largest liquid-crystal-display panel maker by revenue, rose 6.4 percent to NT$42.55, after a 14.6 percent decline in the previous four sessions.
The technology sector rose 2.4 percent as a whole and the financial sector gained 1.3 percent.
Cathay Financial Holding, Taiwan's largest financial firm by assets, rose 2.3 percent to NT$70.4 after falling 8.5 percent between Monday and Thursday.
Shin Kong Financial Holding rose 2.4 percent to NT$31.75.
There were 567 gainers, 190 decliners, and 86 stocks closed unchanged.
That's great news for UMC
TSMC May sales up 37.2 pct on yr ago, topping UMC
TAIPEI, June 9 (Reuters) - TSMC (2330.TW: Quote, Profile, Research), the world's largest contract chip maker, said on Friday its May sales had risen 37.2 percent from a year earlier, topping rival UMC's (2303.TW: Quote, Profile, Research) gain, after new consumer products spurred demand for chips.
The global chip industry has recovered steadily from a slump in early 2005 as new-generation mobile phones, game machines and flat-screen televisions have gained popularity.
Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) (TSM.N: Quote, Profile, Research) reported sales of T$26.777 billion (US$824 million) for last month, up from T$19.508 billion in May last year and marking its ninth straight annual gain.
TSMC garnered sales of T$27.162 billion in April.
By comparision, United Microelectronics Corp. (UMC) (UMC.N: Quote, Profile, Research) posted a 31.5 percent year-on-year gain in May sales on Wednesday.
Both TSMC and UMC count Texas Instruments Inc. (TI) (TXN.N: Quote, Profile, Research), the world's top supplier of mobile phone chips, as major clients.
TSMC's result came right after the close of trade in Taipei on Friday, when its ordinary shares jumped 4.65 percent to T$58.50, outpacing the main TAIEX share index's <.TWII> 1.78 percent. UMC shares ended up 2.13 percent at T$19.20.
TSMC has forecast second-quarter sales up 2.2 to 4.8 percent from the first quarter, with gross profit margin rising as much as 1.6 percentage points
That guidance was more conservative than that of UMC, which expected second-quarter shipments to rise 5 to 6 percent from the January-March quarter. TSMC saw lower growth of 3 percent growth in shipments in the current quarter. (US$=T$32.5)
Be rational, FSC urges investors
2006/6/9
The China Post staff and Bloomberg
Be rational -- that's the advice given by the Financial Supervisory Commission (FSC) for investors as they continued to sell their holdings, contributing to an over 628-point fall of the TAIEX over the past few days.
"Most OTC- and TAIEX-traded companies have been seeing a sales increase, so investors should not worry too much and should refrain from selling their stocks irrationally," said Chang Hsiu-lien, vice chairman of FSC, yesterday.
Her remarks came as the TAIEX plummeted 280.93 points yesterday to close at 6,331.81, down 4.3 percent from the previous trading day. On Monday the stocks fell over 240 points.
Yesterday's fall marked the second biggest decline of the TAIEX since the 400-point decline on Mar. 22, 2004, following the Mar. 19 shooting of President Chen and his subsequent election victory on Mar. 20. Yesterday's fall also helped erase TAIEX gains for the entire year.
"The main causes for the stock decline during this past week were similar declines in the global stock markets, plus a couple of non-economic reasons," Chang said. "But the fundamentals are good."
One non-economic reason she referred to was the drive to recall President Chen Shui-bian by the opposition as inside scoop stories that broke out this week pointed to President Chen's involvement in a series of scandals.
The fall also had to do with inflationary worries. Federal Reserve Bank of Atlanta President Jack Guynn said Wednesday that recent inflation figures are "bothersome" and that the central bank must "remain open to rethinking our policy."
Guynn's sentiments echoed those of Federal Reserve Chairman Ben S. Bernanke and other policy makers this week. Bernanke said on June 5 that inflation is accelerating and "unwelcome."
The U.S. is Taiwan's biggest export market after China. Higher borrowing costs leave consumers with less to spend on Asian-made good and other services.
Separately, the 44 participants in the semi-annual Philadelphia Federal Reserve survey reduced their estimate for U.S. economic growth from June through December to an annual rate of 2.9 percent, from a previous estimate of 3.1 percent.
Taiwan Semiconductor, the world's largest supplier of made-to-order chips, tumbled NT$4.20, or the daily 7 percent maximum, to NT$55.90. Hon Hai Precision Industry Co., Taiwan's largest electronics company by sales, fell NT$7.50 or 3.8 percent, to NT$192.50. MediaTek Inc., the world's largest maker of chips for DVD players, fell NT$24, or 6.8 percent, to NT$327.
Interest rate-sensitive financial shares also fell, led by Cathay Financial Holding Co. and Chinatrust Financial Holding Co.
Cathay Financial, the island's biggest financial services company, slipped NT$2.70, or 3.8 percent, to NT$68.80. Chinatrust, Taiwan's fourth-biggest financial services company by market value, slumped NT$1.25, or 4.7 percent, to NT$25.10.
The following stocks also rose or fell.
Nanya Technology Corp., the island's second-largest memory chipmaker, fell NT$1.05, or 5.3 percent, to NT$18.90. Winbond Electronics Corp. tumbled 68 cents, or 6.9 percent, to NT$9.12. Mosel Vitelic Inc. plunged 90 cents, or 6.8 percent, to NT$12.40.
In a related story, the Ministry of Finance yesterday announced the government's total tax revenue for May was registered at NT$220.3 billion, a fall of 29.4 percent from the same period last year.
Of note, May income tax revenue fell 52.6 percent from the same period last year as this year May had one less working day -- May 31 was the Dragon Boat Festival.
But the loss in income tax revenue was somewhat made up for in securities tax revenue, which for May was registered at NT$10.2 billion, up 120.6 percent from May last year.
http://www.chinapost.com.tw/business/detail.asp?ID=83779&GRP=E
Computex 2006:
http://www.tomshardware.com/site/computex_2006/
Long UMC 3.01 -- just 500 shares... maybe this will be a better trade.
UMC - Chipmaker UMC Reports April Revenue Up
Tuesday May 9, 4:43 am ET
Taiwan Chipmaker UMC Reports April Revenue Up by a Third From April Last Year
TAIPEI, Taiwan (AP) -- United Microelectronics Corp., the world's second-largest contract chipmaker by revenue, said Tuesday its April revenue rose to 8.46 billion New Taiwan dollars (US$269.07 million; euro211.84 million), up 32.9 percent from the same month last year.
The company posted a revenue of NT$6.37 billion for April 2005.
UMC supplies semiconductor chips to several of the biggest companies in the global high-tech sector for use in a variety of products including desktop computers, notebooks, mobile phones and digital cameras.
For the four months ended April 30, UMC reported revenue of NT$32.85 billion (US$1.04 billion; euro822.6 million), 23.2 percent higher than the NT$26.65 billion in the same period of 2005, according to a statement on its Web site.
UMC's April revenue was also slightly up compared to the NT$8.455 billion posted for March.
The company didn't provide further details in the statement.
UMC Chairman Jackson Hu said in late April he expects improvements in the company's second-quarter performance, despite the period usually being a slow season.
"For the second quarter as a whole, we believe that demand will be in line with seasonal norms," he said. "Our understanding is that demand for entry-level handsets in developing markets such as India, Africa, Indonesia and China will see very high growth this year."
A profitable trade would have been at 11.60, rather than 12.60 -- took a $1k loss this morning
Taiwan ADR charts:
Emerging Asia FX-Weaker as U.S. seen raising rates
SINGAPORE, June 7 (Reuters) - Asian currencies weakened across the board on Wednesday for the second straight day as traders factored in higher chances for a U.S. rate increase this month following hawkish comments by Federal Reserve officials.
The South Korean won lost as much as three-quarters of a percent to 950.0 per dollar after local financial markets reopened following a holiday on Tuesday.
The Singapore dollar fell as much as 0.4 percent to 1.5835 per dollar and the Malaysian ringgit fell to a six-week low of 3.6535 per dollar.
The Philippine peso traded as low as 52.94 per dollar, close to last week's four-month low of 52.98 while the Indonesian rupiah fell to a two-week low of 9,392 per dollar.
Analysts said Fed Chairman Ben Bernanke's speech on Monday, when he cautioned against relaxing the central bank's vigil against inflationary pressures despite slowing U.S. growth, pointed to another rate increase, bolstering the dollar.
U.S. interest rate futures have risen this week following comments by Bernanke and other Fed officials on Tuesday.
Many investors were earlier confused as to whether the Fed would pause a two-year rate-rising spree at a meeting later this month due to the slowing economy.
"We got a bit more clarity on the Fed front after Bernanke's speech. That's why the dollar has strengthened," said Thomas Lam, treasury economist at United Overseas Bank in Singapore.
"The risks are definitely skewed towards a 25 basis point increase in June."
Rising U.S. interest rates have been one of the key factors behind the dollar's revival against Asian currencies since 2005 as higher U.S. rates made U.S. short-term deposits more attractive compared with riskier emerging market assets.
Lam said investors have been holding the biggest net short dollar positions since late 2004. That increased the risk of a sharp dollar surge against Asian and major currencies in the event the Fed decided to continue raising interest rates.
But Lam expects the dollar to weaken over the medium term as the U.S. economy slows and the Fed halts raising rates.
"Eventually the Fed will have to pause while the European Central Bank and Bank of Japan will hike interest rates and China will make the yuan more flexible."
China's central bank governor, Zhou Xiaochuan, reiterated the country's position this week when he said the process of making the yuan a fully convertible currency would be gradual.
Offshore non-deliverable forward markets priced the yuan at 7.7240 per dollar in a year's time, suggesting a 3.8 percent appreciation. But the bets on one-year yuan forwards have been pared back from 7.6650 per dollar in May.
THAI RATES MEETING
The Thai baht lost as much as half a percent to 38.33 ahead of a central bank meeting that is expected to raise the key interest rate for the 13th time since August 2004.
But Singapore's DBS Bank said it expected the Bank of Thailand to hold the benchmark rate steady at 4.75 percent.
"We believe growth concerns will dominate in the (BOT's) policy decision, as inflation will slow down in the second half of the year," DBS said in a note.
The Taiwan dollar fell to a six-week low of 32.195
per dollar. Analysts said apart from the strengthening U.S.
dollar, the Taiwan currency was additionally pressured by
political uncertainties surrounding President Chen Shui-bian
which has led to a sell-off in local stocks. CURRENCIES VS U.S.
DOLLAR Change on the day at 0256 GMT
Currency Latest bid Previous day Pct Move
Japan yen 113.09 112.21 -0.78
Sing dlr 1.5822 1.5769 -0.33
Taiwan dlr 32.148 32.062 -0.27
Korean won 947.20 943.00 -0.44
Baht 38.29 38.14 -0.38
Peso 52.88 52.84 -0.08
Rupiah 9363.00 9343.00 -0.21
Ringgit 3.6515 3.6430 -0.23
Yuan 8.0165 8.0144 -0.03
.
Change so far in 2006
Currency Latest bid End prev year Pct Move
Japan yen 113.09 117.96 +4.31
Sing dlr 1.5822 1.6625 +5.08
Taiwan dlr 32.148 32.850 +2.18
Korean won 947.20 1011.60 +6.80
Baht 38.29 41.11 +7.38
Peso 52.88 53.09 +0.40
Rupiah 9363.00 9835.00 +5.04
Rupee 45.91 45.04 -1.90
Ringgit 3.6515 3.7790 +3.49
Yuan 8.0165 8.0702 +0.67
I love this chart... and the web site... this is a person I wish I could meet! I love the attitude...
http://www.asiachart.com/weekly.html
Click on Lulu to go to the farm
Welcome to our Farm, where the cheese is delicious!
http://www.asiagoat.com/
The China Post -- lol -- all the news that fits we link:
"Consider the SOURCE..."
Political instability, rumors drag down shares
2006/6/6
The China Post staff
The weighted price index on the Taiwan Stock Exchange slid 244.37 points to close at 6,715.27 for the biggest daily drop during President Chen Shui-bian's second term and the second biggest daily loss since he took office six years ago.
The number of stocks losing ground far exceeded the gainers -- 781 to 46 -- with 36 stocks remaining unchanged.
Total transaction value reached NT$100.35 billion (US$3.14 billion) on a market turnover of 3.36 billion shares.
Securities analysts attributed the big slide to noneconomic factors, notably the growing concern about political instability and the deteriorating government environment before Chen serves out his second term in 2008.
Despite President Chen's apology to the nation for the strings of scams and scandals involving members of his family and close aides -- as well as his promise to start abiding by the Constitution concerning a proper role should be played by a president -- opposition parties are still pushing for his resignation.
The demonstrators demanding Chen's voluntary resignation over the weekend plan another rally again on the coming Saturday.
Opposition Kuomintang (KMT) Legislator Chiu Yi, who played a key role in uncovering the scams and scandals, filed charges yesterday afternoon against President Chen and Chen's deputy chief of staff Ma Yung-cheng for alleged speculation on the stock market. Ma resigned last week.
Chiu claimed that he got hold of "lethal evidence" to back his charges against the president, the first lady, and Ma. But he said he will only provide the evidence once Taipei prosecutors start handling the case.
The reports that Wu Nai-jen, chairman of the Taiwan Stock Exchange, has decided to quit the post in July, one year before he serves out the current term, highlighted the intensified fight for power among various factions within the ruling Democratic Progressive Party (DPP).
President Chen's latest decision to institute a personnel reshuffle has created many vacancies. Wu has already informed Premier Su Tseng-chang of his decision.
The legislative branch will continue its political standstill, although various parties are trying to hammer out a deal on holding an extra session during the summer recess.
The DPP wants to pass bills for budget programs.
But opposition parties want to pass the rules to set up direct transport links with China after the bill was repeatedly blocked by the DPP at the regular session.
They now also want to give priority to toppling the Cabinet or recalling the president, despite the threat of further boycotts from the DPP.
Most securities analysts do not expect lawmakers to pass any significant bills, even if the extra session is held.
Market rumors gave added weight to the downward market, including the earlier reports that Premier Su, DPP Chairman Yu Shyi-kun and lawmaker Ker Chien-ming were trapped in a hotel fire.
There was also unconfirmed market talk pointing to the sales of shares by influential DPP leaders or people affiliated with the party before the political instability turns worse.
=====================================================
Yu wants new election if Cabinet axed
2006/6/6
The China Post staff
Yu Shyi-kun, chairman of the ruling Democratic Progressive Party, said yesterday President Chen Shui-bian will be asked to dissolve the Legislative Yuan, if Premier Su Tseng-chang's Cabinet were toppled.
He told the press after a meeting with Premier Su and DPP caucus whip Ker Chien-ming a new legislative election must be held following an overthrow of the Cabinet.
The three met for lunch at the Sheraton Hotel, where a fire broke out shortly before 1 p.m.
They left safely. So did over 1,000 guests at one of Taipei's best known tourist hotels. No casualties were reported.
Premier Su called the DPP summit to talk about plans to cope with the opposition demand that President Chen Shui-bian step down.
James Soong, chairman of the People First Party, and his Kuomintang counterpart took to the street Saturday with more than 10,000 supporters to call on the president to resign.
A recall or an impeachment of the president is all but impossible, and the opposition alliance is planning to overthrow the Su Cabinet by proposing a no confidence vote.
It takes only a simple majority of the 221 lawmakers to adopt a no confidence vote on the premier, whereas a two-thirds majority is required to recall or impeach the president.
"If and when a no confidence vote is passed," Yu said, "we'll request the President to dissolve the Legislative Yuan."
The opposition alliance has a majority of one in the Legislative Yuan. When proposed, a no confidence vote is almost certain to be passed.
President Chen has an alternative to appoint a new premier, if the Cabinet is overthrown.
That alternative must be shunned, Yu said.
"But," Yu said, "we don't want that to happen. We want -- and the people want -- political stability, steady economic growth."
Instead of proposing a no confidence vote, Ker said, the opposition should work together with the ruling party to pass a series of important bills.
"The Legislative Yuan has to have an extraordinary session in the summer to adopt such bills as budget appropriations and an arms purchase," Ker urged.
It is in summer recess. Lawmakers will come back to work in September.
Su joined Ker in calling on Wang Jin-pyng, president of the Legislative Yuan, to agree to call a summer session to act on other bills, including the appointment of a new procurator-general.
Apparently, the ruling party doesn't want the opposition to try to overthrow the Cabinet. It knows full well it will lose more seats in the nation's highest legislative organ, if a new parliamentary election takes place before the end of this year.
A parliamentary election should be held within 60 days after the Cabinet is voted out, and the Central Election Commission is on the record that the seats should be halved from 225 to 113 for a new legislature.
Besides, constituencies have to be rearranged in time for the new election, in which, unlike in the past, one lawmaker will be elected from one district.
With the first family mired in scandals, the opposition is expected to win big in a legislative election that will be held in the next few months.
Bank of New York - DR Directory Country:Taiwan
http://www.adrbny.com/dr_directory.jsp?prt=1&country=TW
ADR ISSUE SYMBOL CUSIP CAPITAL RAISED EXCH RATIO ADR:ORD INDUSTRY DEP. BANK S/U EFF. DATE
ADVANCED SEMICONDUCTOR ENGINEERING INC. ASX 00756M404 Yes NYSE 1:05 Tech.Hardware&Equip. CIT S 27-Sep-00
AU OPTRONICS AUO 2255107 Yes NYSE 1:10 Electron.&ElectricEq CIT S 29-May-02
CHUNGHWA TELECOM CO., LTD. CHT 17133Q205 Yes NYSE 1:10 Fixed Line Telecom. BNY S 17-Jul-03
TAIWAN SEMICONDUCTOR MANUFACTURING CO. TSM 874039100 Yes NYSE 1:05 Tech.Hardware&Equip. CIT S 14-Oct-97
UNITED MICROELECTRONICS CORPORATION UMC 910873207 Yes NYSE 1:05 Tech.Hardware&Equip. CIT S 21-Sep-00
HIMAX TECHNOLOGIES INC. HIMX 43289P106 Yes NASDAQ 1:01 Electron.&ElectricEq DB S 30-Mar-06
MACRONIX INTERNATIONAL COMPANY LIMITED MXICD 556103760 No NASDAQ 1:10 Tech.Hardware&Equip. BNY S 9-May-96
SILICON MOTION TECHNOLOGY CORPORATION SIMO 82706C108 Yes NASDAQ 1:04 Tech.Hardware&Equip. BNY S 30-Jun-05
SILICONWARE PRECISION INDUSTRIES SPIL 827084864 Yes NASDAQ 1:05 Tech.Hardware&Equip. CIT S 7-Jun-00
.
.
ACCTON TECHNOLOGY CORPORATION - 144A ATHYYP 00437R103 No PORTAL 1:02 Tech.Hardware&Equip. BNY S 10-Feb-97
ACER INCORPORATED - 144A AIRPP 4434106 No PORTAL 1:05 Tech.Hardware&Equip. CIT S 27-Mar-02
ASIA CEMENT CORPORATION 144A ASIACYP 04515P104 No PORTAL 1:10 Construct.&Materials BNY S 16-Jun-92
ASUSTEK COMPUTER INC. - 144A ASURP 04648R100 No PORTAL 1:01 Tech.Hardware&Equip. CIT S 30-May-97
AURORA CORPORATION - 144A AUGPP 51604304 Yes PORTAL 1:10 Tech.Hardware&Equip. CIT S 27-Jan-95
BENQ CORPORATION - 144A ACMRP 82301102 Yes PORTAL 1:05 Tech.Hardware&Equip. CIT S 18-Jan-02
CATHAY FINANCIAL HOLDING CO. LTD. - 144A CTYHYPC 14915V106 Yes PORTAL 1:10 General Finance BNY S 29-Jul-03
CHI MEI OPTOELECTRONICS CORP - 144A CHIMFPC 167064104 Yes PORTAL 1:10 Tech.Hardware&Equip. MGT S 24-Oct-03
CHINA STEEL CORPORATION - 144A CSRPP 169417102 Yes PORTAL 1:20 Industrial Metals CIT S 29-May-92
CHUNGHWA PICTURE TUBES - 144A CPTRP 17133M204 Yes PORTAL 1:25 Tech.Hardware&Equip. CIT S 8-Oct-03
CMC MAGNETICS CORPORATION - 144A CMCRP 125711101 Yes PORTAL 1:20 Tech.Hardware&Equip. CIT S 3-Oct-03
COMPAL ELECTRONICS, INC. - 144A CMPLGSP 20440Y309 No PORTAL 1:05 Tech.Hardware&Equip. BNY S 20-Nov-00
D-LINK CORPORATION - 144A DLRPP 23323A109 No PORTAL 1:05 Tech.Hardware&Equip. CIT S 18-Sep-98
DELTA ELECTRONICS INC. - 144A DELTYP05 247629207 Yes PORTAL 1:05 Electron.&ElectricEq BNY S 23-Mar-05
E.SUN FINANCIAL HOLDING COMPANY LTD. - 144A ESRPP 26915N108 Yes PORTAL 1:25 General Finance CIT S 27-Sep-04
EVERGREEN MARINE CORP (TAIWAN) LTD - 144A EVRPP 300246105 No PORTAL 1:10 IndustrialTransport. CIT S 2-Aug-96
FAR EASTERN TEXTILE LTD. - 144A FEDSRP 307331207 No PORTAL 1:10 Personal Goods BNY S 19-Oct-99
FAR EASTONE TELECOMMUNICATIONS CO., LTD. -144A FAREYPC 30733Q202 Yes PORTAL 1:15 Mobile Telecom. BNY S 11-Jun-04
FIRST FINANCIAL HOLDING - 144A FFHLY 32021V109 Yes PORTAL 1:20 General Finance CIT S 28-Jul-03
FUBON FINANCIAL HOLDING CO., LTD. - 144A FUBRP 359515103 Yes PORTAL 1:10 General Finance CIT S 16-Apr-98
GIGA-BYTE TECHNOLOGY CO., LTD. - 144A GBTRP 37517K103 Yes PORTAL 1:04 Tech.Hardware&Equip. CIT S 17-Jul-00
HANNSTAR DISPLAY CORPORATION - 144A HANRP 410698104 Yes PORTAL 1:20 Tech.Hardware&Equip. CIT S 22-Jul-03
HIGH TECH COMPUTER CORP. - 144A HTCRP 42980M107 Yes PORTAL 1:04 Tech.Hardware&Equip. CIT S 20-Nov-03
HON HAI PRECISION INDUSTRY CO, LTD - 144A HHGPP 438090102 Yes PORTAL 1:02 Tech.Hardware&Equip. CIT S 7-Oct-99
LITE-ON TECHNOLOGY CORP. - 144A LIRPP 536759103 No PORTAL 1:10 Tech.Hardware&Equip. CIT S 25-Sep-96
MACRONIX INTERNATIONAL CO., LTD. - 144A NONE 556103794 No PORTAL 1:10 Tech.Hardware&Equip. BNY S 7-Feb-02
MICROELECTRONICS TECHNOLOGY INC. - 144A METQYP 59506P208 No PORTAL 1:05 Tech.Hardware&Equip. BNY S 20-Dec-01
MOSEL VITELIC INC. - 144A MOSLRPC5 619539505 No PORTAL 1:10 Tech.Hardware&Equip. BNY S 9-Sep-99
NANYA TECHNOLOGY CORPORATION - 144A NANRP 630247104 Yes PORTAL 1:10 Tech.Hardware&Equip. CIT S 17-Jul-03
POWERCHIP SEMICONDUCTOR CORP. - 144A PWSMYP 73931M102 Yes PORTAL 1:10 Tech.Hardware&Equip. BNY S 21-Oct-99
PREMIER IMAGE TECHNOLOGY CORPORATION - 144A PITCYP 74050A101 Yes PORTAL 1:05 Leisure Goods BNY S 14-Sep-00
PROMOS TECHNOLOGIES INC. - 144A PROTFPC 74343C104 Yes PORTAL 1:10 Tech.Hardware&Equip. BNY S 17-May-02
QUANTA COMPUTER INC. - 144A QCIRP 74762X308 Yes PORTAL 1:05 Tech.Hardware&Equip. CIT S 26-Nov-03
QUANTA DISPLAY INDUSTRIES - 144A QDIRP 74762V104 Yes PORTAL 1:20 Tech.Hardware&Equip. CIT S 2-Oct-03
REALTEK SEMICONDUCTOR CORP. - 144A RLTKGDS 756063103 Yes PORTAL 1:04 Tech.Hardware&Equip. BNY S 24-Jan-02
RITEK CORPORATION - 144A RKCPRP 767767205 No PORTAL 1:02 Tech.Hardware&Equip. BNY S 7-Oct-99
STANDARD FOODS CORPORATION, 144A STFXYP 853407104 No PORTAL 1:05 Food Producers BNY S 10-Jun-97
SUNPLUS TECHNOLOGY CO., LTD. - 144A SNPLYP 86764M106 Yes PORTAL 1:02 Tech.Hardware&Equip. BNY S 8-Mar-01
SYNNEX TECHNOLOGY INTERNATIONAL CORP. - 144A SYNRP 87161A109 No PORTAL 1:04 Tech.Hardware&Equip. CIT S 3-Jul-97
SYSTEX CORPORATION - 144A SYSXYP 87203M103 Yes PORTAL 1:03 Tech.Hardware&Equip. BNY S 16-Jun-00
TECO ELECTRIC & MACHINERY CO., LTD. - 144A TCEMYP 878757103 No PORTAL 1:10 Household Goods BNY S 20-Mar-97
TUNG HO STEEL ENTERPRISE CORPORATION - 144A THSGG 899732101 No PORTAL 1:10 Industrial Metals BNY S 16-Apr-03
WALSIN LIHWA GDR - 144A WALPP 933133100 No PORTAL 1:10 Electron.&ElectricEq DB S 3-Oct-95
WINBOND ELECTRONICS CORPORATION - 144A WINGYP 972657100 No PORTAL 1:10 Tech.Hardware&Equip. BNY S 28-Jan-99
WINTEK CORPORATION - 144A WNTKYP 975733106 Yes PORTAL 1:05 Electron.&ElectricEq BNY S 14-Nov-02
WISTRON CORPORATION - 144A WCRP 977372200 Yes PORTAL 1:10 Tech.Hardware&Equip. CIT S 22-Sep-05
YAGEO CORPORATION - 144A YARPP 984326108 Yes PORTAL 1:05 Electron.&ElectricEq CIT S 26-Sep-94
YANGMING MARINE TRANSPORT CORP. - 144A YMTCY 984749101 No PORTAL 1:10 IndustrialTransport. CIT S 14-Nov-96
ACCTON TECHNOLOGY CORPORATION - REG S -- 00437R202 No -- 1:02 Tech.Hardware&Equip. BNY S 10-Feb-97
ACER INCORPORATED - REG S -- 4434205 No -- 1:05 Tech.Hardware&Equip. CIT S 27-Mar-02
ASUSTEK COMPUTER INC. - REG S -- 04648R209 No -- 1:01 Tech.Hardware&Equip. CIT S 30-May-97
AURORA CORPORATION - REG S -- 51604205 Yes -- 1:10 Tech.Hardware&Equip. CIT S 27-Jan-95
BENQ CORPORATION - REG S -- 82301201 Yes -- 1:05 Tech.Hardware&Equip. CIT S 18-Jan-02
CATHAY FINANCIAL HOLDING CO. LTD. - REG S -- 14915V205 No -- 1:10 General Finance BNY S 29-Jul-03
CHI MEI OPTOELECTRONICS CORP - REG S -- 167064203 Yes -- 1:10 Tech.Hardware&Equip. MGT S 24-Oct-03
CHIA HSIN CEMENT CORP. - REG S -- Y1329H115 No -- 1:10 Construct.&Materials MGT S 26-May-93
CHINA DEVELOPMENT FINANCIAL HOLDING CORP. REG S -- 168908101 No -- 1:20 General Finance BNY S 14-Jun-02
CHINA STEEL CORPORATION - REG S -- 3768317 Yes -- 1:20 Industrial Metals CIT S 29-May-92
CHUNGHWA PICTURE TUBES - REG S -- 17133M303 Yes -- 1:25 Tech.Hardware&Equip. CIT S 8-Oct-03
CMC MAGNETICS CORPORATION - REG S -- 125711200 Yes -- 1:20 Tech.Hardware&Equip. CIT S 3-Oct-03
COMPAL ELECTRONICS, INC. - REG S -- 20440Y200 No -- 1:05 Tech.Hardware&Equip. BNY S 20-Nov-00
COMPAL ELECTRONICS, INC. - REG S -- 20440Y861 No -- 1:05 Tech.Hardware&Equip. BNY S 12-Sep-03
D-LINK CORPORATION - REG S -- 23323A208 No -- 1:05 Tech.Hardware&Equip. CIT S 18-Sep-98
DELTA ELECTRONICS INC. - REG S -- 247629306 Yes -- 1:05 Electron.&ElectricEq BNY S 23-Mar-05
E.SUN FINANCIAL HOLDING COMPANY LTD. - REG S -- 26915N207 Yes -- 1:25 General Finance CIT S 27-Sep-04
ENLIGHT CORPORATION - REG S -- 15585897 Yes -- 1:25 Tech.Hardware&Equip. BNY S 11-Dec-02
EVERGREEN MARINE CORP (TAIWAN) LTD - REG S -- 300246204 No -- 1:10 IndustrialTransport. CIT S 2-Aug-96
FAR EASTERN TEXTILE LTD. - REG S -- 307331306 No -- 1:10 Personal Goods BNY S 19-Oct-99
FAR EASTONE TELECOMMUNICATIONS CO., LTD.- REG S -- 30733Q103 No -- 1:15 Mobile Telecom. BNY S 11-Jun-04
FIRST FINANCIAL HOLDING - REG S -- 32021V208 Yes -- 1:20 General Finance CIT S 28-Jul-03
FUBON FINANCIAL HOLDING CO., LTD. - REG S -- 359515202 Yes -- 1:10 General Finance CIT S 16-Apr-98
GIGA-BYTE TECHNOLOGY CO., LTD. - REG S -- 37517K202 Yes -- 1:04 Tech.Hardware&Equip. CIT S 17-Jul-00
HANNSTAR DISPLAY CORPORATION - REG S -- 410698203 Yes -- 1:20 Tech.Hardware&Equip. CIT S 22-Jul-03
HIGH TECH COMPUTER CORP. - REG S -- 42980M206 Yes -- 1:04 Tech.Hardware&Equip. CIT S 20-Nov-03
HON HAI PRECISION INDUSTRY - REG S -- 438090201 Yes -- 1:02 Tech.Hardware&Equip. CIT S 7-Oct-99
LITE-ON TECHNOLOGY CORP. - REG S -- 536759202 No -- 1:10 Tech.Hardware&Equip. CIT S 25-Sep-96
MACRONIX INTERNATIONAL CO., LTD. - REG S -- 556600999 Yes -- 1:40 Electron.&ElectricEq CIT S 5-Apr-04
MICROELECTRONICS TECHNOLOGY INC. - REG S -- Y60361113 No -- 1:05 Tech.Hardware&Equip. BNY S 20-Dec-01
MOSEL VITELIC INC. - REG S -- 619539604 No -- 1:10 Tech.Hardware&Equip. BNY S 9-Sep-99
NANYA TECHNOLOGY CORPORATION - REG S -- 630247203 Yes -- 1:10 Tech.Hardware&Equip. CIT S 17-Jul-03
POWERCHIP SEMICONDUCTOR CORP. - REG S -- 73931M201 Yes -- 1:10 Tech.Hardware&Equip. BNY S 21-Oct-99
POWERTECH TECHNOLOGY INC. - REG S -- 739368108 Yes -- 1:02 Tech.Hardware&Equip. MGT S 23-Jan-06
PREMIER IMAGE TECHNOLOGY CORPORATION - REG S -- 74050A200 Yes -- 1:05 Leisure Goods BNY S 14-Sep-00
PROMOS TECHNOLOGIES INC. - REG S -- 74343C203 Yes -- 1:10 Tech.Hardware&Equip. BNY S 17-May-02
QUANTA COMPUTER INC. - REG S -- 74762X407 Yes -- 1:05 Tech.Hardware&Equip. CIT S 26-Nov-03
QUANTA DISPLAY INDUSTRIES - REG S -- 74762V203 Yes -- 1:20 Tech.Hardware&Equip. CIT S 2-Oct-03
REALTEK SEMICONDUCTOR CORP. - REG S -- 756063202 Yes -- 1:04 Tech.Hardware&Equip. BNY S 24-Jan-02
RITEK CORPORATION - REG S -- 767767304 No -- 1:02 Tech.Hardware&Equip. BNY S 7-Oct-99
SAMPO CORPORATION - REG S -- 79587U306 Yes -- 1:20 Household Goods BNY S 17-Nov-03
SILICON INTEGRATED SYSTEMS CORPORATION - REG S -- 82706A102 Yes -- 1:10 Tech.Hardware&Equip. BNY S 23-Dec-02
STANDARD FOODS CORPORATION, REG S -- 853407203 No -- 1:05 Food Producers BNY S 10-Jun-97
SUNPLUS TECHNOLOGY CO. LTD - REG S -- 86764M205 Yes -- 1:02 Tech.Hardware&Equip. BNY S 8-Mar-01
SYNNEX TECHNOLOGY INTERNATIONAL CORP. - REG S -- 87161A208 No -- 1:04 Tech.Hardware&Equip. CIT S 3-Jul-97
SYSTEX CORPORATION - REG S -- 87203M202 Yes -- 1:03 Tech.Hardware&Equip. BNY S 16-Jun-00
TAIWAN KOLIN CO., LTD. - REG S -- 874048101 Yes -- 1:10 Electron.&ElectricEq MGT S 11-Jan-06
TECO ELECTRIC & MACHINERY CO., LTD. - REG S -- 878757202 No -- 1:10 Household Goods BNY S 20-Mar-97
WINBOND ELECTRONICS CORPORATION - REG S -- 972657209 No -- 1:10 Tech.Hardware&Equip. BNY S 28-Jan-99
WINTEK CORPORATION - REG S -- 975733205 Yes -- 1:05 Electron.&ElectricEq BNY S 14-Nov-02
WISTRON CORPORATION - REG S -- 977372309 Yes -- 1:10 Tech.Hardware&Equip. CIT S 22-Sep-05
YAGEO CORPORATION - REG S -- Y9723R118 Yes -- 1:05 Electron.&ElectricEq CIT S 26-Sep-94
YANGMING MARINE TRANSPORT CORP. - REG S -- 984749200 No -- 1:10 IndustrialTransport. CIT S 14-Nov-96
Bank of New York has a great amount of ADR news and content:
http://www.adrbny.com/dr_news_afx.jsp
Asian ADRs: Taiwan shares lead Asia declines
Jun 05, 2006
NEW YORK (MarketWatch) -- U.S.-listed stocks of Asia-based companies traded sharply lower Monday, led by declines in Taiwanese stocks, with further pressure coming from weakness in the broader U.S. market.
The Bank of New York Asia ADR Index was last down 2.1% at 141.87, while the Bank of New York Composite Index fell 1.7% to 146.62.
In Asia earlier, Asian markets diverged, with Japanese stocks sliding on profit taking and concern about the U.S. economy, while Hong Kong shares rose as bargain hunting and a surge by Chinese property stocks generated upward momentum. In Tokyo, the Nikkei 225 closed at 15,668.31, down 0.8%.
Other markets were mostly lower, with India, Thailand, Singapore, Taiwan and Korea following Japan south. Indexes in China and Australia managed slight gains. See Asia markets.
Taiwan stocks plunged 3.5% as a standoff between the president and those calling for his resignation threatened to mire the island in political instability.
President Chen Shui-bian relinquished policymaking powers last week amid an insider trading scandal involving his son-in-law. Over the weekend, the President's Office rejected calls by the opposition for Chen to step down.
In New York, U.S. stocks fell to their lows for the session after Federal Reserve Chairman Ben Bernanke made a tough speech on inflation, prompting concern the central bank is far from done with raising interest rates. See market snapshot.
Taiwanese ADRs were the biggest decliners, tracking losses in their home markets. The Bank of New York Taiwan index was last down 4.6% at 169.73.
Volume leader Taiwan Semiconductor Manufacturing fell as much as 4.7% to $9.33. United Microelectronics Corp. lost 7% to $3.21. LCD-maker Au Optronics was off 5.4% at $13.94.
From China, shares of online-game operator Shanda Interactive Entertainment Ltd. rose 0.6% to $14.5 after news that two senior employees have resigned from the company.
Shanda confirmed Monday that General Counsel Greg Pilarowski, who joined Shanda in March 2004, left the company last week.
Gary Chang, a vice president responsible for international business development, also stepped down in late May, Shanda confirmed. Chang was previously in charge of research and development.
A Shanda investor relations official said the two left for "personal reasons."
The company's stock, one of the hottest on the Nasdaq in the months after its May 2004 IPO, has lost two-thirds of its value since peaking in December 2004. Shanda, based in Shanghai, was founded in 1999. See full story.
Other Chinese Internet stocks traded mixed.
Search engine Baidu.com last gained 1.1% at $83.66. Online portal Sina.Corp. was down 2.2% at $24.27, while Sohu Com Inc. lost 2.4% at $25.02.
Korean ADRs also traded lower.
Online game developer Webzen Inc. fell as much as 7.3% to $5.6. Kookmin Bank lost 4.4% at $78.47. Woori Finance traded down 2.9% at $57.35.
Taiwan Shares Plunge to 2-Month Low
Monday June 5, 5:45 am ET
Taiwan Shares Plunge to 2-Month Low Amid Political Uncertainty
TAIPEI, Taiwan (AP) -- Taiwan shares plunged to a two-month low Monday on growing uncertainty over the president's political future in the wake of a series of corruption scandals.
The Weighted Price Index of the Taiwan Stock Exchange fell 244.37 points, or 3.5 percent, to 6,715.27, the lowest closing level since April 4.
The opposition has asked President Chen Shui-bian to resign following scandals involving his son-in-law, wife and members of his inner circle.
Opposition lawmakers have also threatened to bring a motion to recall Chen. But a recall would need to win the support of two-thirds of lawmakers, a difficult task with the opposition only holding a slim majority of seats.
"Unless Chen resigns, the measures to oust him will lead to a standstill in the government in the next few months," said Shawn Wang, a trader at Fubon Securities.
Monday's selloffs were triggered by heavy stop-loss selling shortly after midday, following a sharp decline in June's futures contracts, traders said.
"Most trading by fund managers is program trading, which sets stop-loss points automatically," said Wang.
Index heavyweight Taiwan Semiconductor Manufacturing fell 3.4 percent to NT$60.4, and rival United Microelectronics ended down 3.5 percent at NT$19.6.
The technology sub-index was down 4 percent Monday, and the financial sub-index fell 3.3 percent.
Smartphone maker High Tech Computer fell sharply early in the morning, when the market was relatively stable, on disappointment over its plans to buy phone vendor Dopod International. It closed down 7 percent to NT$968.0.
High Tech, the world's largest maker of mobile phones that use the Microsoft operating system, said late Sunday it plans to buy Dopod for up to US$150 million (euro120 million).
"The market had expected a more sexy deal, such as a stake buyout from Microsoft or a Japanese mobile phone operator," said Chialin Lu, an analyst at Yuanta Core Pacific Securities.
Traders said they expect the market to fall further after a total of 135 companies fell by the 7 percent daily limit Monday.
Across the board, there were 46 gainers, 781 decliners, and 36 closed unchanged.
Marc Faber is touting the Taiwan market in his Investment Themes for 2006.
http://www.gloomboomdoom.com/marketcoms/indexmarketcoms.htm
Noticed this evening that EWJ now has a message board on Yahoo! (yawn).
Time to get this board going again!
Form 8-K for CHINA FUND INC
----------------------------
19-Aug-2005
Regulation FD Disclosure
Item 7.01. Regulation FD Disclosure.
Pursuant to Regulation FD Rules 100-103, The China Fund, Inc. (the "Fund") furnishes the monthly Insight report of the Fund's Listed Investment Manager. Item 9.01. Financial Statements and Exhibits
(c) Exhibits
Exhibit No. Description
99 Monthly Insight Report of the Fund's Listed Investment Manager
MANAGER’S COMMENTARY
The Hong Kong indices rose again, boosted by a strong performance from oil companies and telecom stocks. Just three companies — PetroChina, China Mobile and CNOOC — explain 105% of MSCI China’s 8.9% gain ytd. The smaller cap, management-owned companies, which the Fund continues to prefer, have been becalmed, despite good business fundamentals and low valuations. The managers feel unqualified to bet on the direction of the oil price, especially when all the major oil companies in China are state-owned and liable to act in national, rather than shareholder, interests. We therefore have no direct exposure to the sector.
The biggest news of the month was the People’s Bank of China’s announcement on July 21st that the Renminbi (Rmb) exchange rate was to move from being pegged to the US dollar to being linked to a basket of currencies. The Rmb exchange rate against the US dollar was adjusted from 8.28 to 8.11, a 2.1% revaluation. This was a small revaluation, which in itself will have a very limited effect on any Chinese company. Theoretically it is slightly bad news for exporters and commodity producers and good news for importers and those companies geared in US dollar. In our portfolio, the breakdown between domestic companies and exporters is roughly 70:30. Our portfolio companies are therefore, to a limited extent, net beneficiaries of this revaluation.
Note, though, that this is not a simple re-pegging: it is a move to a link to a basket of currencies (make-up unspecified). If the US dollar were to resume its rise against the euro and yen, therefore, based upon growing interest rate differentials, the Rmb might be expected to depreciate against the US dollar. The political effects of the revaluation are, perhaps, more important than the economic. Ahead of Hu Jin-tao’s state visit to the US in September, this move provides the proponents of free trade with some ammunition to use against growing US protectionist sentiment, showing that China is making gradual progress towards a more flexible currency regime.
We would like to thank investors in the Fund for their support of the rights offering completed on July 29th. 4,250,000 shares were issued at a price of US$26.27, which represented a premium to the net asset value of the Fund on the day of issue. The Fund received over US$110 million in additional investment opportunities. The main purpose of the rights offering was to increase the assets of the Fund available for investment opportunities, including, in particular, opportunities to invest in the A Share market in China. This market, in which foreign investors so far represent less than 1% of total market capitalization, started to rally from an eight-year low at the month end, following the Rmb revaluation. The radical share reform program now underway in the domestic market is making good progress. Our first A-share investment, the utility company Shenergy, is offering a compensation package of a number of bonus shares for every 10 held; we expect to receive these shares at the end of August.
Chris Ruffle, Martin Currie Inc
INVESTMENT STRATEGY
The Fund was 97.4% invested, ahead of the receipt of the proceeds from the rights offering, forecast for August 4th. Of the 59 stocks held in the portfolio, three are unlisted. There was little change to the portfolio in July. We added to our positions in the cheap, large coal producer, Shenhua Energy, and China’s leading IC fab, SMIC. We sold positions in Weichai, on signs of a slow down in heavy truck demand, and Guangshen Rail, where funding from an A-share has been delayed indefinitely.
Chris Ruffle, Martin Currie Inc
DIRECT INVESTMENT MANAGER’S COMMENTARY
The limited revaluation of the Rmb announced on July 21st will have a negligible immediate effect on the Fund’s private equity portfolio. We believe it to be a positive indication of the strength of the Chinese economy.
The main immediate influence on the private equity market has been a number of substantial regulatory changes announced in the first half of the year. Over time these will lead to a more transparent and attractive market which will benefit the Fund. In the short term, though, they are leading to some delays in getting the formal regulatory approvals needed to close deals.
teco Optronics has seen a significant diminution in profitability due to difficult trading conditions in the Organic light emitting diode (OLED) market. New capacity has come to the market ahead of demand, leading to severe margin erosion. Teco is considering a number of restructuring options. Consequently the book value of the Fund’s investment has been written down to US$150,000 from c. US$587,000 on July 8th.
=================================
Complete filing HTML:
http://www.sec.gov/Archives/edgar/data/845379/000095013505004863/b56459cfexv99w1.htm
PDF Version:
http://www.sec.gov/Archives/edgar/data/845379/000095013505004863/b56459cfexv99w1xpdfy.pdf
Taiwan Greater China Fund Produces 20.2% Total Return on Shares for 12 Months Ending June 30
Business Wire - August 08, 2005 09:06
NEW YORK, Aug 08, 2005 (BUSINESS WIRE) -- The Taiwan Greater China Fund (NYSE: TFC), a diversified closed-end investment company registered in the United States, today announced its second quarter 2005 financial results.
"The Fund continues to focus on improving investment performance, reducing expenses and narrowing its discount to net asset value," said Steven R. Champion, President and CEO.
The Fund's net asset value (NAV) and market value produced total returns during the quarter that outperformed the Taiwan Stock Exchange Index (TAIEX) but trailed its primary benchmark, the Taiwan China Strategy Index (the "TCS Index") as computed by MSCI. The Fund's NAV gained 4.4% and its share price on the New York Stock Exchange rose 4.3% during the second quarter while the TAIEX rose 3.8% and the TCS Index was up 5.2% for the same period. For the 12 months ending on June 30, the Fund's total return on a market value basis outperformed the TAIEX and TCS Index while its total return on an NAV basis for the same period trailed both indexes. During the 12 months ending June 30, the Fund's total returns on a market value basis and an NAV basis were 20.2% and 16.2%, respectively, compared with total returns of 16.7% for the TAIEX and 17.0% for the TCS Index for the same period. (All performance data reflect total returns in U.S. dollar terms and, except for the TCS Index, are sourced from Bloomberg. Past performance is no guarantee of future results. The results reflected above assume the reinvestment of dividends and capital gains. For important information and disclosures on the TCS Index, see the Fund's website at http://www.taiwangreaterchinafund.com/.)
The Fund's unaudited ratio of expenses to average net assets was 0.42% during the second quarter of 2005, and was 2.91% for the 12 months ending on June 30. In the first half of 2005, the Fund's unaudited total expenses were reduced approximately 40% from the same period of last year.
The Fund's discount to NAV averaged 8.5% during the second quarter of 2005 and 8.2% for the first half of 2005 compared to 11.7% and 10.5% for the same periods, respectively, of last year.
On June 30, 2005, total net assets of the Fund were $109,309,124 or a net asset value per share of $5.46. This compares with total net assets of $154,154,448 or a net asset value per share of $4.71 at June 30, 2004. Total net assets on March 31, 2005 were $106,209,413 or a net asset value per share of $5.23. Total number of shares outstanding at June 30, 2005, following repurchases of 301,100 shares during the second quarter of 2005, was 20,005,318. After repurchases of 1,492,900 shares from November 2004 through March 2005 and a self-tender offer during the third quarter of 2004 for approximately one-third of the Fund's previously outstanding shares, total number of shares outstanding at March 31, 2005 was 20,306,418. The total number of shares outstanding at June 30, 2004 was 32,698,976. The Fund paid a dividend of $0.01 per share on July 30, 2004 to shareholders of record on July 12, 2004 (ex-date July 8, 2004).
For the quarter ended June 30, 2005, the Fund had a realized capital gain of $1,649,955 or $0.08 per share. During the same quarter, the Fund had a net investment gain (ordinary income minus operating expenses) of $61,239 or less than $0.01 per share. For the six months ended June 30, 2005, the Fund had a realized capital gain of $1,193,445 or $0.06 per share and a net investment loss of $542,763 or $0.03 per share.
The Fund's equity investments as of June 30, 2005 were in the following major industries:
Percent of
Industry Net Assets
Computer Systems & Hardware 19.47%
Semiconductors 14.79
Plastics 11.03
Flat-Panel Displays 9.09
Computer Peripherals--ODM 8.93
Steel & Other Metals 8.64
Electronic Components 5.61
Transportation 3.34
Automobile 2.65
Electrical & Machinery 2.24
As of June 30, 2005, the Fund's 10 largest equity holdings,
representing 54.00% of net assets, were in:
Percent of
Company Net Assets
Hon Hai Precision Industry Co., Ltd 9.69%
China Steel Corp. 7.63
Taiwan Semiconductor Manufacturing Co., Ltd. 7.41
AU Optronics Corp. 5.38
Asustek Computer Inc. 5.11
Formosa Chemicals & Fiber Corp. 4.86
United Microelectronics Corp. 4.66
Lite-On Technology Corp. 3.30
BenQ Corp. 3.02
Nan Ya Plastics Corp. 2.94
The Taiwan Greater China Fund is listed and publicly traded in the
United States. The Fund is organized for investment in securities of
Taiwan issuers by non-Taiwan investors and follows an investment
strategy of primarily investing in Taiwan listed companies that derive
or expect to derive a significant portion of their revenues from
operations in or exports to mainland China.
Quarter Ended Quarter Ended Quarter Ended
6/30/05 3/31/05 6/30/04
Total
Net Assets $109,309,124 $106,209,413 $154,154,448
NAV
Per Share $5.46 $5.23 $4.71
Shares
Outstanding 20,005,318 20,306,418 32,698,976
SOURCE: The Taiwan Greater China Fund
Taiwan Greater China Fund
Steven R. Champion, 011-886-2-2715-2988
or
The Altman Group
Patricia Baronowski, 212-681-9600
or
Web site: http://www.taiwangreaterchinafund.com
Copyright Business Wire 2005
Very interesting article, thanks for posting.
Do you know some "hot" Taiwanese stocks?
What do you think of the current Taiwanese stock market?
Why Taiwan Matters
MAY 16, 2005 BusinessWeek Online
http://www.businessweek.com/magazine/content/05_20/b3933011.htm
The global economy couldn't function without it. But can it really find peace with China?
Want to find the hidden center of the global economy? Take a drive along Taiwan's Sun Yat-sen Freeway. This stretch of road is how you reach the companies that connect the vast marketplaces and digital powerhouses of the U.S. with the enormous manufacturing centers of China.
The Sun Yat-sen is as bland as any U.S. interstate, but it's the highway of globalization. Though it snakes along the whole west coast of Taiwan, the key 70-km stretch starts in Taipei's booming new Neihu district of high-tech office buildings and ends in Hsinchu, home to two of Taiwan's best universities, its top research center, and a world-renowned science park. Along the way, the Sun Yat-sen leads to some of the most important but anonymous tech outfits in the world: Asustek Computer, whose China factories spit out iPods and Mini Macs for Apple (AAPL ); and Quanta Computer, the No. 1 global maker of notebook PCs and a key supplier to Dell (DELL ) and Hewlett-Packard. You'll also find Taiwan Semiconductor Manufacturing Co. (TSM ), the biggest chip foundry on the planet, an essential partner to U.S. companies such as Qualcomm and Nvidia (NVDA ). Dozens more companies dot the Neihu-Hsinchu corridor. There's AU Optronics (AUTO ), a big supplier of liquid-crystal display panels, and Hon Hai Precision Industry, which makes everything from PC components to Sony's (SNE ) PlayStation 2, and which is a fast-rising rival to Flextronics International (FLEX ), the world's biggest contract manufacturer. Taken together, the revenues of Taiwan's 25 key tech companies should hit $122 billion this year.
Taiwan's success is also China's. No one knows for sure how much of China's exports in information and communications hardware are made in Taiwanese-owned factories, but the estimates run from 40% to 80%. As many as 1 million Taiwanese live and work on the mainland. "All the manufacturing capacity in China is overlaid with the management and marketing expertise of the Taiwanese, along with all their contacts in the world," observes Russell Craig, of tech consultants Vericors Inc.
CROSS-STRAIT DRAMA
Impressive stuff. Yet for many people around the world, Taiwan evokes only one thing: the standoff between the People's Republic of China, which considers the thriving democracy as just one of its provinces, and Taiwan President Chen Shui-bian, who has made little secret of his dream of one day declaring Taiwan independent. This cross-strait drama is now in a tense new phase, played out with dramatic effect in recent weeks. First Beijing passed an anti-secession law authorizing an attack on Taiwan in case it moves towards independence. Taiwan responded with a massive anti-Beijing rally. Then came the shocker: The late April visit to the mainland by Lien Chan, Chen's chief political opponent and chairman of Taiwan's Kuomintang (KMT). As millions of Taiwanese and Chinese watched on television, Chinese President Hu Jintao shook hands with the opposition leader at a lavish state reception in Beijing. After Lien returned to Taipei on May 3, Hu's government sweetened its PR offensive with more goodies, including a plan to ease restrictions on Chinese travel to Taiwan, lift tariffs on some Taiwanese agricultural imports -- and send two giant pandas to the Taipei Zoo. To add even more surprise, Taiwanese President Chen, despite some of his supporters' fury at Lien's visit, inserted himself into the dialogue. Chen agreed to send a message to Chinese President Hu through another opposition leader, James Soong of the People First Party, who was scheduled to start a China trip on May 5. Hu seems to be counting on his contacts with the opposition to increase pressure on Chen, forcing him to accept that the island is part of China. But that's a concession Chen's unlikely to make.
Real reconciliation thus seems a long way off. Yet any serious attempt to lower the tension would hold huge promise for the executives who run America's IT industry, which depends on Taiwan for so much of its goods. A shooting war between Taiwan and China would be catastrophic in human terms. And for the Western companies that have built their fortunes around Taiwan, the damage would be a direct hit to the global economy and the Digital Age. "It would be the equivalent of a nuclear bomb going off," says a top executive at a U.S. high-tech giant. Couldn't U.S. industry develop sources of IT supply that don't involve the Taiwanese? "That's like asking, 'What's the second source for Mideast oil?' says this exec. "You might find it, but it's going to cost you." Insiders estimate that it would take a year and a half to even begin to replace the vast web of design shops and mainland factories the Taiwanese have built. "The IT model is not one built on second-sourcing," says Ken Wirt, a top executive for the handheld business of palmOne Inc.
Not that Taiwan and China aren't also extremely pragmatic. Throughout this turbulent spring Taiwan Inc. hasn't missed a step. For instance, Acer Inc., the PC maker, increased sales by 40% in March; its models are among the top five sellers in the world. Dell and Hewlett-Packard will source $10 billion and $21 billion respectively from Taiwan this year, estimates Chicago-based consulting firm THT Research, which tracks contract manufacturing. Apple is boosting its order book from Taiwan companies by 28% from a year ago, to $5 billion. Quanta on Apr. 8 announced a partnership with the Massachusetts Institute of Technology to cooperate on research into the next generation of computing. Despite a cyclical downturn that has hurt profits, TSMC has embarked on a $2.6 billion ramp-up to produce more custom-designed chips than ever. Compared with a more specialized chipmaker such as Intel, "we have maybe 100 times the number of product lines," says TSMC chairman and CEO, Morris Chang. "It takes a very special expertise."
China may threaten Taiwan as No. 1 IT supplier. But for now it's Taiwanese engineers who provide ever-more-ingenious solutions to manufacturing and design conundrums. "In Taiwan, people say the U.S. understanding of outsourcing is backward," says Victor Zue, co-director of the Computer Science & Artificial Intelligence Laboratory at MIT. "It feels more like the Taiwanese are outsourcing marketing and branding to the rest of the world."
The island's high-tech industry has had to improve its skills sharply to get where it is today. Barely a decade ago, Taiwan made components or assembled machines designed elsewhere, and was only a marginal player in more lucrative segments of the electronics industry. Today its companies are increasingly proficient at original design, and dominate manufacturing in key categories. In LCD screens the Taiwanese have passed the Japanese and rival the Koreans. Taiwan is tops in routers, notebook computers, and cable modems. The PC industry "has really consolidated around Taiwan," says John A. Antone, Hong Kong-based head of the Asia Pacific region for Intel Corp. (INTC ), which has 400 engineers at work on the island. "That's just where the best engineering is done."
How does Taiwan do it? Lower pay helps. "You look at the engineering costs in the U.S. and compare them to Taiwan's, and we are talking about one third of the cost," says Kai Hsiao, director of global procurement for greater China at HP. Visit Taiwan-owned factories on the mainland, and you will find that assembly line wages average $120 a month.
But Taiwan's advantage goes way beyond cheap labor. The island combines an entrepreneurial culture with effective government involvement. The Hsinchu-based Industrial Technology Research Institute is a collection of labs that works closely with local companies. It has 4,300 engineers striving to match the best that the West, Japan, and Korea can offer in fields such as microelectronics and optoelectronics. The government-backed Institute has alliances with scientists from MIT, the University of California at Berkeley, and Carnegie Mellon University in the U.S. Companies such as TSMC and cross-town rival United Microelectronics Corp. (UMC ) have their origins in ITRI technology.
The result is one of the deepest reserves of high-tech talent in the world. It starts with figures such as Chang, who was present at the creation of Taiwanese tech. Walk into Fab 12, TSMC's multibillion-dollar facility in Hsinchu, and off to your left you'll see a giant portrait of the chairman sitting, pipe in hand, in an armchair. Surrounding him are scenes from his life -- as a child in Hong Kong, as a student at Harvard, and as TSMC chief at the company's debut on the New York Stock Exchange. But the silver-haired Chang, 73, isn't done yet. He's still working hard to beat rivals UMC in Taiwan and Semiconductor Manufacturing International Corp. (SMIC) in Shanghai. He's also pushing Taiwan's politicians to build up the island's schooling. "I wish we had a world-class university," he says.
Chang and other tech leaders blend Western values -- Chang took liberal-arts classes at Harvard before studying mechanical engineering at MIT -- with Asian culture. One minute Jonney Shih, Asustek's 52-year-old founder, will be discussing Six Sigma best practices and the next minute he'll be evoking the Changshan snake described in Sun Tzu's Art of War. When attacked at one end, the serpent counterattacks with the other. "We need that kind of fast reaction," says Shih.
The quick reflexes of Taiwanese like Shih make all the difference. Unlike Korea, where Samsung Electronics Co. and LG Electronics Inc. dominate, Taiwan is composed of smaller and nimbler outfits. When Taiwanese companies get too large, they tend to spin off businesses and refocus. Hence, in 2001 computer maker Acer Inc. begat consumer electronics company BenQ and LCD panel maker AU Optronics. The Hsinchu-based chip design houses spun off from UMC include MediaTek and Novatek, a designer of chips for LCDs.
Some of Taiwan's most important tech companies have also grown by acquiring technology from elsewhere. Chi Mei Optoelectronics Corp. (CMO) licensed LCD technology from Fujitsu Ltd. (FIJSY ) and hired top engineers to come up with the rest of the expertise it needed to become a leading LCD producer.
All these businesses excel at serving corporate customers. Eighteen months ago, after Intel had made a big bet on Centrino, the wireless Internet system for notebook PCs, the American company sought out a partner that could quickly get Centrino computers to the market. So Intel teamed up with engineers at Acer. Within three months, says Acer CEO J.T. Wang, they not only came up with a high-end Centrino notebook sold under the Acer brand but also mid-tier and even entry-level PCs using Intel's new technology.
Taiwanese companies will do just about anything to please customers. When Quanta was first working on what promised to be a hot new design for a top client, it had to work in total secrecy. Quanta executives guaranteed the U.S. customer that all work would be done in the middle of the night. They even had the assembly line draped in concealing black. Other Taiwanese companies combine discretion with an ability to handle even the smallest orders. HP's Hsiao says he places orders for as few as 10 PCs of a specialized configuration. The Taiwanese can process and ship such an order in 48 hours. "They can change direction overnight," says Hsiao.
This do-whatever-it-takes ethos has led Taiwan's businesses to move to the mainland at astonishing speed. "In 1999 we had about 300 employees" in China, says Alexander Lee, head of operations for Asustek in Suzhou, China. "Now we have more than 45,000." Issues of loyalty don't enter the equation. Acer CEO Wang recently asked his own Taiwanese suppliers if, as good citizens, they'd keep some production in Taiwan. "Their answer was: 'No way,"' he says.
The Taiwanese also play a vital role for rivals on the mainland. Liu Chuanzhi, chairman of Beijing computer company Lenovo Group Ltd. (LNVNG ), which just completed its purchase of IBM's PC division, says Lenovo sources components from Taiwanese companies. According to THT Research, Lenovo even buys notebooks from Quanta, Compal, and MiTAC. Liu says that's not the case.
Most important of all, the Taiwanese are the real developers of China's semiconductor industry. Chinese companies such as SMIC (SMI ) depend on squads of Taiwanese executives for knowhow. TSMC is still far ahead but it is starting to focus on China, too. The Taipei government has allowed TSMC to invest $900 million for its own plant in China.
In effect, Taiwan is hoping to control design and innovation while giving over much of its manufacturing to China. When U.S. companies come to Taiwan today, they say, "'This is what we want. Do you have it?"' says Billy Ho, president of MiTAC, which makes smart phones, PDAs, and servers.
Increasingly, the Taiwanese do. Two years ago, MiTAC decided to upgrade the PDAs it sells under its own brand name as well as under several different names in Europe. In discussions with the sales team, Ho recalled how, when he lived near Birmingham, England, he would get baffled by the layout of the city streets. A PDA with GPS, the satellite-controlled global positioning system often found in cars, was the answer. Today, MiTAC is No. 3 globally in PDAs, behind only Dell and HP.
The Taiwanese know they're good at such innovations. But they also know they are being squeezed on price even while they are under relentless pressure to be more creative. "Margins have come screaming out of the PC business because products have become very commoditized," says Michael Marks, CEO of Flextronics Corp. Net margins at Asustek have fallen to 6.4%, from 19% in 2001. The company's 2004 net profit of $484 million was 7% lower than what it was in 2001, although sales nearly tripled in the same period to $8 billion. Both Quanta and Compal have suffered from falling profit margins too, despite fast-rising sales.
Some analysts also wonder how long the Taiwanese will have the edge in chips. "I don't think Taiwan is in the driver's seat anymore," says James C. Mulvenon, co-author of a 2004 Rand Corporation study on Taiwan's and China's chip industries, which concludes that European and Japanese chipmakers will provide China with technology the Taiwanese refuse to share.
One way out is to find new markets. "We have to get into the next wave of products," says Ray Chen, president of Compal. "It can be TVs, cell phones, home digital media centers. We don't know yet." To do that better, Compal plans to double its R&D team. Quanta's beefing up too. In its $20 million partnership with MIT, Quanta is looking at using artificial intelligence to link digital devices that have different operating systems. Quanta boss Barry Lam also identifies autos as a promising area. As control and display systems in cars go digital, the Taiwanese can apply their expertise in making complex components for small spaces.
The other way to stay ahead for Taiwan is to create its own brands and maintain solid margins by delivering better performance and design. A leader in the branding effort is BenQ, which has its own brand of thin-screen TVs and MP3 players. Since its launch in 2001, BenQ has stressed in-house design to make its branded products stand out. Manfred Wang, who runs the BenQ design center, leads a team of 70 designers who have, among other things, come up with a PC monitor whose base can be folded up against it, taking up much less space in shipping. "Our designers are aware of the manufacturing process and that's a big advantage," says Wang, who learned his skills in Germany and once worked at Porsche.
At the heart of Taiwan's effort to reinvent itself is the government research institute, ITRI. It's into everything from new wireless networks to nanotubes that provide backlighting for displays. It's also trying to mix the hard sciences with something softer. Enter Room 131 of Block 53 on the main campus, and you'll find the Creativity Lab. The place looks more like an advertising agency than a high-tech center, with its stuffed animals and a comfy couch for a staff that includes artists, psychologists, and an anthropologist, in addition to engineers. The idea is that getting techies together with liberal arts types will help designers think more broadly, says Wen-Jean Hsueh, a PhD in mechanical engineering from California Institute of Technology who is the lab's head. "We know we have strong manufacturing and engineering," she says. "But we have to look beyond this."
Even this fresh effort has to build on Taiwan's engineering corps, which can't expand enough to meet all of Taiwan's needs. With so many companies expanding research and development, "we have to fight very hard to get experienced guys," says Hsiao-ping Lin, head of Faraday Technology, which specializes in chip design services. He hopes to hire Indian engineers, but adds, "in the long run, we will set up an R&D center in mainland China."
That shift to China is understandably of great concern to Taiwan's political and business leaders. But it may be inevitable. "The market here is so much more important than Taiwan's," says Lawrence Ho, the Taiwan-born owner of online music startup 8LaNetwork Inc., which has its headquarters in Beijing's trendy Jianwai Soho district. Ho also appreciates how hard his mainland employees are willing to work -- as many as 90 hours a week.
Taiwan clearly has lots to worry about, but it's also renowned for its resilience. Intel's John Antone compares Taiwan to long-distance runners who are being challenged but who are still in the lead. "As long as they're committed to run very aggressively," he says, "I don't see anyone catching them." Competitors be warned: Taiwan will do everything it can to stay in the race.
By Bruce Einhorn, with Matt Kovac in Taipei, Pete Engardio in New York, Dexter Roberts in Beijing, Frederik Balfour in Shanghai, and Cliff Edwards in San Mateo, Calif.
Taiwan Drill Showcases Readiness for China Attack
By Alice Hung
TAIPEI (Reuters) - Two Mirage fighter jets touched down on
Wednesday on a usually busy Taiwan highway -- the first time in
26 years -- as part of war games to test the island's combat
readiness against any attack by arch-foe China.
The drills by Taiwan, claimed by China and seen by security
analysts as the most dangerous flashpoint in the Asia-Pacific,
coincided with drills by the People's Liberation Army (PLA) on
the island of Dongshan off China's southeastern coast.
Taiwan's air force sealed off for six hours a section of
the highway linking the island's north and south to allow the
advanced French-made warplanes to land, re-fuel, load missiles,
and take off in the early morning drill.
The last time the military jets practiced landing on the
highway -- built to double as an emergency runway in times of
war -- was in 1978 before the road was opened.
"The drill shows the air force's capability and
determination to defend our air space," Mirage pilot Chang
Wei-kwang told a news conference after completing his mission.
"The entire process was very smooth," Chang said at Hsinchu
air base in northern Taiwan.
Hundreds of people with binoculars and cameras gathered on
both sides of the highway to witness the rare drill, part of
the annual Han Kuang, or Chinese Glory, war games that will
culminate in joint-force exercises in August.
"Long live Taiwan!" some in the cheering crowd shouted as
the planes landed.
HIGHER CHANCE OF MISCALCULATION
Military experts said the flurry of summer war games by
Taiwan and China at a time of rising political tensions
increased the likelihood of miscalculation.
"There is a possibility for the escalation based on the
rising military show of force in the region," said Andrew Yang,
military expert and secretary-general of the Chinese Council of
Advanced Policy Studies, a private think tank.
"Having fighter planes landing on the tarmac of a highway
is a very risky maneuver. But it is a very important step to
test air force capability to adjust to the war time situation."
China sees the self-ruled democratic island as a renegade
province and has vowed to attack if it declares statehood.
Beijing is convinced Taiwan will push for formal
independence under President Chen Shui-bian and is preparing
for a possible showdown with the island.
China kicked off war games simulating an invasion of Taiwan
on Dongshan last week. Taiwan's military said on Tuesday the
drills so far had been small and limited to ground troops.
Dongshan, 170 miles from the Taiwan-held Pescadore islands,
also known as Penghu, has been the site of eight drills since
1996, when China threatened Taiwan in the run-up to its first
presidential election.
Taiwan's Chen appears determined to adopt a new
constitution in 2008, a move Beijing sees as a formal
declaration of independence and which it has warned could lead
to war.
Taiwan's leaders are betting China will not attack and
jeopardise surging economic growth, seen as necessary to create
jobs, avert social unrest and perpetuate Communist Party rule.
The island's leaders believe the United States would rush
to its rescue. Western analysts say Taipei may be
miscalculating Beijing's resolve and that Washington has no
desire to be dragged into a conflict with China over Taiwan.
REUTERS Taiwan stocks end up 1.13 pct as tech shares gain [DLBYDFT]
(Updates closing indices, adds comment)
TAIPEI, July 9 (Reuters) - Taiwan stocks rebounded after a
two-day fall on Friday, with electronics shares leading the way
as investors cheered solid June sales from microchip heavyweights
like Taiwan Semiconductor Manufacturing Co. (TSMC) <2330.TW>.
The main TAIEX share index <.TWII> ended up 1.13 percent at
5,777.72, more than offsetting the 0.35 percent it lost over the
past two sessions. But the index finished flat this week.
"TSMC's good June sales rekindled buying interest in the tech
sector after recent weakness," said Chiang Chen-sheng, manager at
Masterlink Investment Advisory.
TSMC, the world's top contract chipmaker, jumped 2.22 percent
to T$46.00 after reporting record high revenues for a third
consecutive month on Thursday, helping the tech sub-index <.TELI>
1.81 percent higher.
United Microelectronics Corp. <2303.TW> rose 2.1 percent to
T$24.30 memory chipmaker Powerchip <5346.TWO> was up 4.35 percent
at T$26.40, rebounding from recent falls that were caused by
worries over earnings at the sector giant Intel Corp. <INTC.O>.
Computer peripherals makers also gained momentum.
AU Optronics <2409.TW>, the world's number-three display
screen maker, rose 4.38 percent to T$50.00 and rival Chi Mei
<3009.TW> surged the daily seven percent to T$53.00.
Analysts said some investors hunted for bargains in the
display sector, which had been hurt by concerns over weaker
demand for flat-screen monitors and televisions.
Gains in the tech sector defied a 1.56 percent fall on the
Nasdaq <.IXIC> following weak results from Internet company Yahoo
<YHOO.O> and software firm Siebel Systems <SEBL.O>.
Turnover on the main exchange was flat with Thursday's at
T$54.80 billion due to caution ahead of upcoming second-quarter
corporate earnings reports from major U.S. and Taiwan firms.
The over-the-counter market's TAISDAQ index <.TWOII> rose
1.76 percent to 119.41, while July TAIEX futures <0#TX:> edged
1.3 percent higher to close at 5,707.
-------------------TAIEX IN PERSPECTIVE-------------------
Move on day +1.13 percent
Close on day 5,777.72
2004 intraday high 7,135.00
2004 intraday low 5,450.72
All time high 12,682.41 12 FEB 1990
__________________________________________________________
(US$1=T$33.7)
((Reporting by Baker Li, editing by Kirby Chien;
baker.li@reuters.com; Reuters Messaging:
baker.li.reuters.com@reuters.net; +886 2 2508-0815))
China Agrees to Phase Out Tax on Imported Chips
NYTimes - July 9, 2004
By ELIZABETH BECKER
WASHINGTON, July 8 - The United States said on Thursday that it was dropping its first case against China at the World Trade Organization after settling a dispute with the country over its tax on imported semiconductors.
Under the settlement, China agreed to a gradual elimination of the tax advantage given to its domestic semiconductor industry, which has increased the price of United States imports by 14 percent.
"This is another step toward real results," Robert B. Zoellick, the United States trade representative, said at a news conference here. "China is a voracious consumer of semiconductor chips and this will give us a level playing field."
With the record trade deficit and the outsourcing of American jobs to China growing as significant election-year issues, the administration is casting its trade policy as a success built on practical negotiations and settlements of disagreements.
"With the help of our Chinese colleagues, this problem-solving approach often works," Mr. Zoellick said.
Behind him was a banner with the phrase "real results" repeated again and again in rows, a rebuttal to accusations by Senator John Kerry, the Democratic candidate for president, and his running mate, John Edwards, that the administration's trade policies favor multinational corporations and fail to protect American workers.
Roger Altman, an investment banker and former deputy Treasury secretary under President Bill Clinton who is advising the Kerry campaign, said that the Bush administration's real results were a record trade deficit and the loss of 1.9 million jobs despite the opening of more global markets.
"President Bush's record on trade is dismal," Mr. Altman said. "He is on track to be the first since President Hoover to see net exports go down during his term."
The Chinese agreed to phase out the tax advantage over the next nine months, ending it in April 2005. The United States filed a complaint with the W.T.O. in March, contending that China's value-added tax on imported semiconductors violated international trade rules prohibiting tax policies that favor domestic manufacturers.
The $70 billion semiconductor industry in the United States hailed the settlement, saying it was critical if the United States was to continue to lead the field.
"We're very pleased with these results, absolutely," said George M. Scalise, president of the Semiconductor Industry Association, who attended the news conference along with other industry representatives.
The American semiconductor industry sells $2 billion in chips to China every year, making it the largest foreign supplier. But that is still a small share of the $25 billion Chinese market. Mr. Scalise said he hoped the settlement would mean that foreign competitors would be more competitive and increase their sales in the coming years.
Some Democratic lawmakers said the settlement was vindication of their demands over the last two years that the administration take stronger action against the Chinese on trade issues.
Representative Sander M. Levin, Democrat of Michigan, said the agreement was a "step forward, but much, much more needs to be done."
"We've got a $120 billion trade deficit with China - a 50 percent increase since 2001 when the administration came into office - and it is growing," he said.
Mr. Zoellick said at the news conference that the United States trade deficit was a sign of a dynamic economy, not of poor policy.
"The overall trade deficit, it reflects that the United States is buying more than others do," he said. "The solution is a combination of opening more markets and enforcing trade laws."
As an example of the administration's approach, Mr. Zoellick cited China's agreement in April to abandon a plan to impose its own standard for wireless technology, essentially agreeing to join the rest of the world rather than dividing it up.
The Semiconductor Industry Association applauded that decision as well, which gives it even greater access to China, the world's third-largest semiconductor market.
Several contentious issues remain with China like textile exports, currency controls and labor rights. The administration rejected calls by the A.F.L.-C.I.O. to punish China for the commercial advantage that the group said the country gained by violating workers' rights.
The representatives of the American semiconductor industry said the resolution would help the United States economy. The chip industry employs 255,000 Americans, according to the association, and United States companies have a 50 percent share of the world market. B. Anne Craib, the association's director of international trade, said that a majority of semiconductors were manufactured in the United States, but she could not be more precise.
But like other industrial products, semiconductor chips are increasingly being manufactured overseas, especially for the export market. Eamonn Fingleton, a trade expert based in Tokyo, said that factories in Japan, Taiwan, Singapore and Korea would profit as much from this settlement as those in the United States.
Most trade experts had said that China would be unable to defend the tax before the W.T.O. Indeed, the settlement was reached just days before the United States was prepared to ask the W.T.O. to form a panel to adjudicate the dispute.
Frank Vargo, spokesman for the National Association of Manufacturers, said ending the tax was crucial to ensure that China did not discriminate against other American industries through its tax system.
China warns Rice it won't 'sit idle' if US backs Taiwan independence
Thu Jul 8, 1:09 PM ET
BEIJING (AFP) - China's military strongman Jiang Zemin told visiting US National Security Adviser Condoleezza Rice (news - web sites) China would not "sit idle" if foreign forces supported Taiwan independence.
"If Taiwan authorities are determined to pursue Taiwan independence; if foreign forces interfere and support this, we would definitely not sit idle without doing anything," Jiang was paraphrased on Chinese state-run television station CCTV as saying.
The aging but still powerful former president's veiled warnings against US military intervention if Taiwan formally declares independence and China attacks the island came amid increasing tension between Beijing and Taipei.
The recent re-election of pro-independence Taiwan President Chen Shui-bian has fueled fears in Beijing that Chen may be moving toward a formal split in his second term.
Beijing hopes Washington will curb any such moves by Chen.
Jiang told Rice Taiwan was the "most sensitive" issue in Sino-US relations and expressed dismay with Washington's recent handling of Taiwan matters.
"The US side's recent series of actions, especially plans to sell arms to Taiwan made Chinese people feel seriously concerned and dissatisfied," said Jiang, chairman of the Central Military Commission.
He said while China prefers to settle the Taiwan issue peacefully, it "will definitely not tolerate Taiwan independence."
Foreign Minister Li Zhaoxing, in his talks with Rice, "strongly" urged the US to understand the sensitivity of the Taiwan issue and "gravity" of the current situation, the Xinhua news agency reported.
"The Taiwan issue has a bearing on China's key interest and is the most crucial factor that affects the smooth development of China-US relations," Li said.
He urged the US to not only stop selling arms to Taiwan, which Beijing fears will embolden Chen, but to halt military and official relations with Taiwan.
A senior administration official travelling with Rice told AFP she conveyed President George W. Bush (news - web sites)'s reaffirmation of US backing for the One-China policy, which recognizes Taiwan as a part of China, and his "non-support" for Taiwan independence or any actions by Taipei to change the status quo.
But she reiterated Washington's commitment to the Taiwan Relations Act, under which the United States pledges to defend the island if it is attacked.
"Rice, on behalf of the president, expressed our continuing commitment to the obligations under the Taiwan Relations Act ...," said the official who declined to be identified.
China considers Taiwan part of its territory awaiting reunification, by force if necessary, and has refused to recognize Taiwan's 55 years of de-facto independence since they separated at the end of a civil war in 1949.
Human rights, religious freedom and weapons proliferation issues were also raised by Rice during discussions, said the official, who declined to give details.
A US source said Rice specifically raised concerns about retired military doctor Jiang Yanyong who exposed Beijing's coverup of last year's SARS (news - web sites) epidemic, but is now reported by US media to be under 24-hour supervision and being forced to undergo "brainwashing sessions."
He had recently called for a government reassessment of the 1989 Tiananmen massacre.
Rice nonetheless painted a positive picture of US-China relations.
"China is an important power in Asia and globally and we have an excellent relationship with China," she said.
"It's a relationship that we think is built on mutual trust and an understanding that China and the United States need to cooperate."
Iraq (news - web sites) and North Korea (news - web sites) also were discussed, but no details were given by either side.
The US sees China as a key partner in trying to end the standoff with Pyongyang.
At six-party talks in Beijing last month, the United States offered Pyongyang three months to shut down and seal its nuclear weapons facilities in return for economic and diplomatic rewards.
Beijing has urged Washington to soften its tone and has indicated displeasure over the deployment this month of 10 F-117 Nighthawk stealthfighters to South Korea (news - web sites).
Rice meets President Hu Jintao Friday before leaving for Seoul.
In U.S.-China Talks, a Sharp and Enduring Focus on Taiwan
NYTimes - July 9, 2004
By JOSEPH KAHN
BEIJING, July 8 - Senior Chinese leaders conveyed a heightened sense of alarm on Thursday about their nation's relations with Taiwan, and they strongly warned the United States national security adviser, Condoleezza Rice, that continued American sales of high-tech weapons to Taiwan would increase the chances of conflict, a Bush administration official said.
Jiang Zemin, China's military chief, appeared agitated about Taiwan in a meeting here with Ms. Rice on Thursday, the official said. Mr. Jiang gave the visiting American delegation the impression that China was still struggling to agree on a strategy for dealing with Taiwan's president, Chen Shui-bian.
"There's a sense that they do not know what to do," the official said.
China has argued that President Chen, who recently began his second four-year term, intends to achieve formal independence from mainland China, a move Beijing says it would counter with force.
Ms. Rice emphasized that the United States did not support Taiwanese independence. She argued that the Bush administration had worked to temper Mr. Chen's independence-oriented rhetoric, especially during his inaugural address in May.
But Mr. Jiang indicated that Chinese leaders saw things differently. "They clearly did not find the inaugural encouraging," the official said.
The exchange of views about Taiwan was part of a broader discussion about the most sensitive issues in Chinese-American relations, including the North Korea nuclear crisis. Ms. Rice, who met Mr. Jiang and Li Zhaoxing, the Chinese foreign minister, is to hold talks on Friday with Hu Jintao, China's president and Communist Party chief.
American officials said Ms. Rice, who also visited Tokyo and plans to stop in Seoul, South Korea, had used this trip to Beijing to encourage more high-level dialogue. The administration official said that without such regular exchanges, the relationship between the two countries could sour over a "laundry list" of sensitive disputes.
China considers Taiwan part of its sovereign territory and has long said that it will attack if the island, which is governed separately, were to declare formal independence.
Most American officials and independent analysts consider an attack unlikely, in part because it could draw China into a direct conflict with the United States, Taiwan's main ally. But many also say the chances of an armed confrontation rose with Mr. Chen's re-election in the spring.
The Bush administration official suggested that the American delegation was surprised by China's latest vehemence on the Taiwan problem. Some administration officials had said they hoped that tension between China and Taiwan had cooled since May, when Mr. Chen, in a speech the United States had approved, vowed not to pursue independence.
Mr. Jiang also heavily criticized the Bush administration's decision to increase the quality and quantity of arms sales to Taiwan, arguing that such sales violated an agreement with China to gradually phase out weapons sales. In 2001, Mr. Bush authorized the Pentagon to sell enhanced weapons system to Taiwan, including diesel submarines, P-3C antisubmarine planes and Patriot antimissile systems. Most still remain to be purchased and delivered.
Ms. Rice responded by explaining "what we can do and what we can't do" to address China's concerns, the official said.
She told the Chinese leaders that the Bush administration would continue to press Taiwan to adhere to its commitment to avoid actions that disrupt the status quo in relations with China. But she firmly ruled out reducing arms sales, which she described as an obligation under the Taiwan Relations Act.
Ms. Rice also urged Mr. Jiang to open a dialogue with Mr. Chen. She suggested that China's insistence that Mr. Chen accept the so-called One China principle as a condition of beginning talks was not helpful.
"The message was that China ought to be thinking about how to work this formula" so that face-to-face talks are possible, the official said.
On North Korea, the other major topic, Ms. Rice urged the Chinese to keep the pressure on North Korea, a longtime Beijing ally, to produce a realistic plan for ending its nuclear program.
In the latest round of six-way talks, held in China last month, the Bush administration put forward its first concrete proposal for resolving the nuclear standoff with the insular Communist regime in North Korea.
The administration official said the Chinese side "took credit" for persuading North Korea not to reject the American plan at the time. The official said the Chinese promised to keep the pressure on the North before new talks in September.
REUTERS Taiwan stocks flat but June results comfort techs [DLBVTZM]
(Updates index, adds analyst comment)
TAIPEI, July 9 (Reuters) - Taiwan stocks were little changed
in listless morning trade on Friday, though firm June corporate
revenues offered comfort to the battered electronics sector and
helped it ignore losses in U.S. markets.
The TAIEX share index <.TWII> was off just 3.68 points, or
0.06 percent, at 5,709.71 after 80 minutes of trade, never
straying more than 40 points up or down.
Top contract microchip maker Taiwan Semiconductor
Manufacturing Co <2330.TW> <TSM.N>, the market's most heavily
capitalised stock, was up 0.22 percent after reporting record
high revenues for a third consecutive month on Thursday.
"Electronics shares are in an awkward position because
opinion is very divided on their outlook for the third quarter,"
said Richard Tsai, senior vice president in charge of research at
Grand Cathay Securities.
"But prices have already fallen by a lot and there are signs
that the market has overshot" based on June revenues, he said.
The electronics subindex <.TELI> was up 0.12 percent, defying
a 1.56 percent tumble on the Nasdaq composite index <.IXIC>
following weak results from Internet company Yahoo <YHOO.O> and
software firm Siebel Systems <SEBL.O>.
Buying in the electronics sector was highly selective,
however, with downstream computer manufacturers making a weaker
performance on worries back-to-school demand in the third quarter
would be sluggish.
"Our advice to clients on electronics is to carefully pick
oversold shares with good fundamentals," Tsai said.
Quanta Computer Inc. <2382.TW>, the world's largest contract
manufacturer of laptop computers, slipped 2.24 percent to T$65.50
while main local competitor Compal Electronics <2324.TW> slipped
0.29 percent.
Construction-related stocks like cement firms and builders
were mostly stronger, powered by expectations of more business
from reconstruction in Taiwan's central and southern regions
after heavy damage from severe floods.
Taiwan Cement <1101.TW>, the island's largest cement maker,
was up 0.64 percent at T$15.80
(US$1 = T$33.7)
((Reporting by Michael Kramer, editing by Tiffany Wu;
michael.kramer@reuters.com; Reuters Messaging:
michael.kramer.reuters.com@reuters.net; +886 2 2508-0815))
ASML, Applied, Tokyo Elec Gain 1st Half Taiwan Chip Gear Orders
1 Jul 2004, 08:10am ET
--------------------
TAIPEI -(Dow Jones)- U.S.-based Applied Materials Inc. (AMAT), the world's largest semiconductor equipment maker, Dutch giant ASML Holding N.V. (ASML) and Japan's Tokyo Electron Ltd. (8035.TO) are the main beneficiaries of strong first-half spending by Taiwan's world-class contract chipmakers.
Taiwan Semiconductor Manufacturing Co. (TSM) and United Microelectronics Corp. (UMC) have so far this year reported to financial regulators spending a combined NT$94.02 billion (US$1=NT$33.699) on new semiconductor-making equipment during the first six months - or two-thirds of their projected capex for this year.
Of that amount, the majority has gone to three semiconductor equipment makers, one each from Europe, the U.S. and Japan.
TSMC, the world's largest contract chipmaker, has reported spending NT$13.30 billion at ASML Hong Kong Ltd. so far this year, NT$9.19 billion at Tokyo Electron and NT$6.48 billion at Applied Materials Asia/Pacific Ltd.
UMC, the No. 2 contract chipmaker, has bought NT$10.09 billion worth of equipment from Applied Materials Asia/Pacific, NT$8.80 billion from ASML Hong Kong, and NT$8.22 billion from Tokyo Electron.
Demand for chip-production equipment has been so brisk amid an upturn in the industry that chipmakers in Taiwan have complained they may have to wait until next year to take delivery of some equipment - since even the tool makers appear to have been caught off guard by the strong semiconductor industry rebound.
The Semiconductor Industry Association projects world chip sales will rise 28.6% this year to US$214 billion, surpassing the previous record of US$204 billion in the Internet boom year of 2000.
In 59 separate statements to the Taiwan Stock Exchange filed from the beginning of the year to June 30, TSMC has reported spending NT$51.39 billion. Rival UMC has reported spending NT$42.63 billion in 45 statements to the TSE.
Some of the spending originates from last year. Companies in Taiwan don't have to report capital spending until the total amount of purchases from a single vendor passes NT$500 million.
For TSMC, a total of NT$5.88 billion of its first half total stretches beyond December of last year. The remainder, NT$45.51 billion, is all from December through June 30 of this year.
For UMC, a total of NT$5.07 billion of its total stretches back into 2003, while the remaining NT$37.56 billion is all from the first half of this year.
-By Dan Nystedt, Dow Jones Newswires; (8862) 2502-2557; dan.nystedt@ dowjones.com
-Edited by Andrew Bullard
Dow Jones Newswires
07-01-04 0810ET
Interesting Chinese Merger- Don't know where else to give FYI
NEWPORT BEACH, Calif., Jun 28, 2004 (BUSINESS WIRE) -- Amtech Resources (Pink Sheets:ARII) has signed a Letter of Intent to merge with Xin Hong Ye Real Estate Development Inc., one of the fastest growing real estate development companies in South China with over $30 million (USD) in revenues. Terms of the merger were not disclosed. Amtech anticipates that the merger will be finalized within the next few weeks pending shareholder approval.
With headquarters in Shun De, in the Hong Gang Gan Yaun Industrial District, Guaong Zhou Province, Xin Hong Ye specializes in the design, construction and property management of shopping centers, office buildings, housing projects and toll roads. The company has developed an exceptional reputation for its high quality of work with government agencies throughout the People's Republic of China.
Xin Hong Ye Real Estate Development Inc. has been incorporated in the People's Republic of China since 1992. The company is currently involved in a massive city development project in Northern China and construction of a large land fill site in Southern China.
Disclaimer: The company relies upon the Safe Harbor Laws of 1933, 1934 and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the company include, but are not limited to, government regulation; managing and maintaining growth; the effect of adverse publicity; litigation; competition; and other factors which may be identified from time to time in the company's public announcements.
SOURCE: Amtech Resources
Pegasus Capital Inc. for Amtech Resources
Raymond J. McNamee, 949-706-0141
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UPDATE: Taiwan Government Urges Caution As China Invest Rises
23 Jun 2004, 07:16am ET
- - - - -
=== I missed this ther other day - interesting ==
TAIPEI -(Dow Jones)- The Taiwanese government has warned local companies to shift investment to Southeast Asia or elsewhere, after figures showed that approved corporate investment in China rose by more than 60% on the year in the first five months of 2004.
The urgings come weeks after a Taiwanese business tycoon came under fire from China due to his alleged pro-Taiwan independence stance. The rising investment total raises concerns that Taiwan's economy is becoming too dependent on China, home to one of the world's fastest growing economies and militaries. China considers Taiwan a renegade province and has threatened to use force to retake the democratic island if it moves toward formal independence.
In a report issued late Monday, the Taiwan Investment Commission said it had approved China investment of US$2.76 billion in the January-to-May period, up from US$1.72 billion last year.
Approved investment in May more than tripled on the year to US$1.02 billion from US$303 million last year, the government agency said.
The commission appealed to firms to "carefully examine" increasing investment in China, since "the mainland's power supply shortage remains serious" and its efforts to cool its economy could cause hardship.
The commission "suggests shifting investment to Southeast Asia, South Asia and Eastern Europe to more evenly distribute investment risk."
Official investment figures are normally far lower than actual investment, since many Taiwanese firms route money through third locations to avoid regulatory scrutiny when investing in China. It's also possible that current government figures exaggerate growth slightly since a greater share of investment is going on official books given relaxed restrictions in recent years.
Taipei's warnings come shortly after Chinese authorities accused the founder of Chi Mei Optoelectronics Corp. (3009.TW), Hsu Wen-Lung, of backing Taiwan independence, having branded him an "anti-China bigot" in late May, which could affect Chi Mei's prospects of expansion in China, analysts say. Hsu stepped down as chairman of the firm.
Indeed, Ma Xiuhong, a vice minister at China's Ministry of Commerce, last week said China's policy of encouraging Taiwanese investment on the mainland hasn't changed, but China won't tolerate anyone who supports Taiwan independence. When asked whether Beijing is doing anything to limit the China investments of Taiwanese petrochemical firms, including Chi Mei, Ma said only, "I'm not clear about what cases you are referring to."
There are currently no restrictions on who will be allowed to invest in China, Ma said.
The commission noted that the sharp investment rise in May was due to large investments by blue-chip companies Taiwan Semiconductor Manufacturing Co. (TSM), which has set up a unit in Shanghai, electronics contract manufacturer Hon Hai Precision Industry Co. (2317.TW) and display screen-maker AU Optronics Corp. ( AUO).
The commission in early may approved TSMC's plan to remit US$371 million to China, the final step in the company's plan to build Taiwan's first-ever chip factory in Shanghai.
Of Taiwan's total investment in China for the first five months of the year, nearly 59% went to Jiangsu province, home to Shanghai, and nearly 51% was aimed at the electronics and electrical equipment industries.
-By Dan Nystedt, Dow Jones Newswires; (8862) 2502-2557; dan.nystedt@ dowjones.com
Dow Jones Newswires
06-23-04 0716ET
Copyright (C) 2004 Dow Jones & Company, Inc. All Rights Reserved.
REUTERS Asian chip sales to rise 27 pct in 2004 - Gartner [DKMMFRV]
SINGAPORE, June 22 (Reuters) - China's demand for chips
that power computers, mobile phones and consumer gadgets will
help boost semiconductor industry sales across Asia by 27.4
percent to US$90.8 billion in 2004, research body Gartner said
on Tuesday.
The regional semiconductor market is expected to reach
US$138.8 billion in 2008 from US$71.3 billion in 2003, a
compounded annual growth rate of 14.3 percent, Gartner said.
"China, the electronic equipment manufacturing hub of the
world, is expected to continue to lead the industry in the
region," said Gartner analyst Philip Koh.
China is the world's third-largest consumer of chips.
China's demand will increase by 33 percent in 2004 to reach
US$39.7 billion, led by huge demand from the computer,
communications and consumer electronics segments.
"Both foreign and Chinese domestic manufacturers are trying
to provide new products and increasing investment in production
capacity to gain market share," said Tina Tang, Gartner's
China-based analyst.
South Korea will also drive the growth trend, Gartner said.
South Korea's semiconductor consumption is estimated to hit
US$16.6 billion in 2004, supported mainly by cellular phones,
digital consumer electronics products and flat panel displays.
"The digital appliance industry has indeed become a major
growth engine for the Korean electronics industry," said C.S.
Kim, Gartner's South Korean analyst.
However, growth in the Taiwan semiconductor market remains
constrained by the shift of electronic equipment manufacturing
from the island to China, particularly for data processing
applications, Gartner said.
"The semiconductor consumption market for data processing
applications in Taiwan will drop gradually after 2005, while
communications will take over from 2005," said Ben Lee,
Gartner's Taiwan analyst.
Taiwan markets closed Tues for holiday. But the MSCI expectations are high - perfect setup to not meet expectations for a rebound, imo. At least initially, anyway. Look for a capitulation move next week or maybe as early as late this week. I'm sniffing at ASX and TSN and EWT for long term plays.
REUTERS Taiwan stocks rebound after MSCI weighting hike [DKLQGJK]
(Updates indices, adds comment)
TAIPEI, June 21 (Reuters) - Taiwan stocks edged higher in
early trade on Monday as MSCI's announcement it would raise the
Taipei market's weighting in its emerging markets index triggered
buying across the board.
Around 40 minutes into trade, the TAIEX share index <.TWII>
was up 0.70 percent at 5,608.19 points, recouping some of the
1.68 percent it lost on Friday. The index fell 2.9 percent last
week.
"It's knee-jerking to MSCI's move but some people still used
early rises to sell on concerns over volatile U.S. stocks," said
Richard Tsai, senior vice president at Grand Cathay Securities.
U.S. stocks finished mixed on Friday as investors closely
watched a Federal Reserve meeting at month's end.
Shares in Taiwan Semiconductor Manufacturing Co (TSMC)
<2330.TW> rose 1.87 percent to T$43.60 and those of United
Microelectronics Corp (UMC) <2303.TW> jumped 2.18 percent to
T$23.40, helping the tech sector <.TELI> 0.7 percent higher.
The world's two largest contract chipmakers are foreign fund
darlings, making up some 14 percent of total market
capitalisation.
Morgan Stanley Capital International (MSCI) said Taiwan
stocks would first be weighted at 75 percent capitalisation
beginning November 30, up from the current 55 percent in a
widely-expected move to reflect the island's deregulation of
foreign investment rules.
The move to full inclusion before June next year, making
Taiwan the heavily weighted market in the Emerging Markets Index,
was more than investors had anticipated, which analysts said
would prompt global fund managers to buy more local shares.
On a sour note, investors continued to sell display screen
maker AU Optronics <2409.TW> following its disappointing overseas
share offer last Friday.
AU shares dropped 1.96 percent to T$50.00 partly on growing
concerns that demand for flat-screen monitors will slow in the
second half of the year, hurting screen prices.
Smaller rival Chi Mei <3009.TW> lost 3.64 percent to T$53.00.
(US$1=T$33.8)
((Reporting by Baker Li, editing by Alice Hung; Reuters
Messaging: baker.li.reuters.com@reuters.net; +886 2 2508-0815))
First phase in November!
This sounds like a long way off, but it does make Taiwan #2 behind Hong Kong in % in the port. That leaves a lot more time for speculators to short any pop this may create and still buy low this summer. There seems to still be a lot of tech stock fear in Asia, even more than in the US.
I wonder if this is like "doubling down" on Taiwan in the index? The stock prices over there are so depressed.
Think about it... if a particular stock price goes down in your personal portfolio, it's a smaller piece of your total pie. If you average down when the stock drops -- say like like 50 --- and you choose to double the number of shares, this increases your % in your port and gives you a lot more shares cheap.
This could be a really good thing as far as volume pressure.
If any analysis comes my way over the weekend, I will post it.
REUTERS UPDATE 1-MSCI to boost Taiwan weighting in index [DKKYFJS]
(Adds details throughout)
NEW YORK, June 18 (Reuters) - Global stock index compiler
MSCI on Friday said it would raise the weighting of Taiwan
stocks in its widely followed MSCI Emerging Markets Index, a
move that will likely boost Taiwan stocks as money managers
adjust their portfolios to reflect the index.
MSCI, or Morgan Stanley Capital International Inc.,
majority-owned by Wall Street firm Morgan Stanley <MWD.N>, said
it would remove the Limited Investability Factor (LIF) now
applied to the MSCI Taiwan Index, in two stages.
The first stage, which will raise the LIF from 0.55 to 0.75
in November, will lift Taiwan's weighting in the MSCI Emerging
Markets Index to 16.05 percent, raising it to second in the
index only to South Korea. Taiwan's weight in the index is now
12.09 percent.
The second stage will raise the LIF from 0.75 to 1, which
will make Taiwan the heaviest-weighted country in the index,
with a rating of 20.20 percent.
In the MSCI All Country Far East ex-Japan Index, Taiwan's
weight will also rise, from a current 17.18 percent to 21.7
percent after the first stage, making it the second heaviest
weighted country after South Korea, and to 26.85 percent after
the second stage, giving it the heaviest weight of all
countries in the index.
The first phase will take effect as of the stock market
close on Nov. 30, while the second phase will take effect as of
the close on May 31, 2005, MSCI said.
MSCI to Remove in Two Phases the Limited Investability Factor -LIF- Currently [DKKYMRG]
Applied to the MSCI Taiwan Index
Business Editors
GENEVA--(BUSINESS WIRE)--June 18, 2004--MSCI announced today that,
having completed a consultation with investors worldwide, it has
decided to remove the Limited Investability Factor (LIF) currently
applied to the MSCI Taiwan Index. The change will be implemented in
two separate phases. In the first phase, MSCI will increase the LIF
from 0.55 to 0.75 as of the close of November 30, 2004; in the second
phase, MSCI will increase the LIF from 0.75 to 1 as of the close of
May 31, 2005.
MSCI's decision to remove the LIF currently applied to the MSCI
Taiwan Index recognizes that significant developments have taken place
to relax foreign investment restrictions in Taiwan over the past few
years. While some investment constraints continue to exist, their
impact is not significantly different from those existing in other
emerging markets and as such do not justify continuing to maintain the
LIF currently applied to the MSCI Taiwan Index. However, MSCI will
continue to monitor developments in Taiwan and will also monitor
market participants' experiences related to the implementation of the
first phase of the LIF increase.
Publication of Provisional Indices
In order to assist market participants in understanding and
preparing for these changes, MSCI will begin publishing on September
1, 2004, provisional indices based on the full removal of the LIF for
the following composite indices: MSCI Emerging Markets (EM), MSCI AC
Far East ex Japan, MSCI AC Asia Pacific ex Japan, and the MSCI Taiwan
Index.
The provisional indices may be used by clients who wish to measure
performance based on the full removal of the LIF ahead of MSCI's
official implementation schedule.
Pro forma impact of the removal of the LIF on the MSCI Emerging
Markets (EM) and MSCI All Country Far East ex Japan Indices
Tables 1 and 2 are provided for illustrative purposes only and
show the pro-forma weights of various countries and regions in the
MSCI Emerging Markets and MSCI All Country Far East ex Japan Indices,
as of June 2, 2004, as a result of the LIF removal in two phases.
In addition, the two tables show the pro forma transition turnover
in the MSCI Emerging Markets (EM) and MSCI All Country Far East ex
Japan Indices that result from the two-phase removal of the LIF and
the distribution of this turnover across the different constituent
countries and regions.
Please note that the turnover data shown is specific to the
current MSCI Emerging Markets (EM) and MSCI All Country Far East ex
Japan Indices and is not indicative of the turnover in any other MSCI
index.
-0-
*T
TABLE 1: TAIWAN LIF IMPLEMENTATION IMPACT ANALYSIS ON MSCI EMERGING
MARKETS (EM) INDEX IN 2 PHASES
----------------------------------------------------------------------
Current: Phase 1:
Taiwan's LIF = 0.55 Taiwan's LIF = 0.75
-------------------- ------------------------------
-------------------Index Mcap---Index---Index Mcap--Index---One-way
-------------------USD mm-----Weight----USD mm----Weight---Index
---------------------------------------Turnover
----------------------------------------------------------------------
KOREA 166,565 19.20% 166,565 19.07% 0.07%
----------------------------------------------------------------------
SOUTH AFRICA 123,153 14.20% 93,858(1) 10.74% 1.73%
----------------------------------------------------------------------
TAIWAN 104,922 12.09% 140,228 16.05% 1.98%
----------------------------------------------------------------------
CHINA 74,150 8.55% 74,150 8.49% 0.03%
----------------------------------------------------------------------
BRAZIL 66,774 7.70% 66,774 7.64% 0.03%
----------------------------------------------------------------------
MEXICO 53,774 6.20% 53,774 6.16% 0.02%
----------------------------------------------------------------------
INDIA 44,358 5.11% 44,358 5.08% 0.02%
----------------------------------------------------------------------
RUSSIA 38,550 4.44% 38,550 4.41% 0.02%
----------------------------------------------------------------------
MALAYSIA 38,967 4.49% 38,967 4.46% 0.02%
----------------------------------------------------------------------
ISRAEL 38,604 4.45% 38,604 4.42% 0.02%
----------------------------------------------------------------------
THAILAND 23,621 2.72% 23,621 2.70% 0.01%
----------------------------------------------------------------------
CHILE 15,378 1.77% 15,378 1.76% 0.01%
----------------------------------------------------------------------
INDONESIA 14,095 1.62% 14,095 1.61% 0.01%
----------------------------------------------------------------------
TURKEY 11,917 1.37% 11,917 1.36% 0.00%
----------------------------------------------------------------------
POLAND 12,011 1.38% 12,011 1.38% 0.00%
----------------------------------------------------------------------
HUNGARY 11,281 1.30% 11,281 1.29% 0.00%
----------------------------------------------------------------------
ARGENTINA 4,434 0.51% 4,434 0.51% 0.00%
----------------------------------------------------------------------
CZECH REPUBLIC 5,900 0.68% 5,900 0.68% 0.00%
----------------------------------------------------------------------
PERU 4,472 0.52% 4,472 0.51% 0.00%
----------------------------------------------------------------------
PHILIPPINES 4,534 0.52% 4,534 0.52% 0.00%
----------------------------------------------------------------------
EGYPT 2,742 0.32% 2,742 0.31% 0.00%
----------------------------------------------------------------------
MOROCCO 1,844 0.21% 1,844 0.21% 0.00%
----------------------------------------------------------------------
PAKISTAN 1,661 0.19% 1,661 0.19% 0.00%
----------------------------------------------------------------------
VENEZUELA 1,306 0.15% 1,306 0.15% 0.00%
----------------------------------------------------------------------
JORDAN 1,285 0.15% 1,285 0.15% 0.00%
----------------------------------------------------------------------
COLOMBIA 1,199 0.14% 1,199 0.14% 0.00%
----------------------------------------------------------------------
EM 867,497 873,509 3.96%
----------------------------------------------------------------------
Phase 2:
Taiwan's LIF = 1.00
------------------------------
------------------------Index Mcap---Index---One-way
-------------------------USD mm------Weight---Index
------------------------------------Turnover
----------------------------------------------------------------------
KOREA 166,565 18.13% 0.47%
----------------------------------------------------------------------
SOUTH AFRICA 93,858(1) 10.21% 0.27%
----------------------------------------------------------------------
TAIWAN 185,584 20.20% 2.07%
----------------------------------------------------------------------
CHINA 74,150 8.07% 0.21%
----------------------------------------------------------------------
BRAZIL 66,774 7.27% 0.19%
----------------------------------------------------------------------
MEXICO 53,774 5.85% 0.15%
----------------------------------------------------------------------
INDIA 44,358 4.83% 0.13%
----------------------------------------------------------------------
RUSSIA 38,550 4.20% 0.11%
----------------------------------------------------------------------
MALAYSIA 38,967 4.24% 0.11%
----------------------------------------------------------------------
ISRAEL 38,604 4.20% 0.11%
----------------------------------------------------------------------
THAILAND 23,621 2.57% 0.07%
----------------------------------------------------------------------
CHILE 15,378 1.67% 0.04%
----------------------------------------------------------------------
INDONESIA 14,095 1.53% 0.04%
----------------------------------------------------------------------
TURKEY 11,917 1.30% 0.03%
----------------------------------------------------------------------
POLAND 12,011 1.31% 0.03%
----------------------------------------------------------------------
HUNGARY 11,281 1.23% 0.03%
----------------------------------------------------------------------
ARGENTINA 4,434 0.48% 0.01%
----------------------------------------------------------------------
CZECH REPUBLIC 5,900 0.64% 0.02%
----------------------------------------------------------------------
PERU 4,472 0.49% 0.01%
----------------------------------------------------------------------
PHILIPPINES 4,534 0.49% 0.01%
----------------------------------------------------------------------
EGYPT 2,742 0.30% 0.01%
----------------------------------------------------------------------
MOROCCO 1,844 0.20% 0.01%
----------------------------------------------------------------------
PAKISTAN 1,661 0.18% 0.00%
----------------------------------------------------------------------
VENEZUELA 1,306 0.14% 0.00%
----------------------------------------------------------------------
JORDAN 1,285 0.14% 0.00%
----------------------------------------------------------------------
COLOMBIA 1,199 0.13% 0.00%
----------------------------------------------------------------------
EM 918,865 4.14%
----------------------------------------------------------------------
Note: Data as of the close of June 2, 2004
(1) Excludes Anglo American which will be deleted from the MSCI South
Africa Index and included in the MSCI United Kingdom Index effective
as of the close of November 30, 2004 following its country
reclassification as announced on May 11, 2004.
TABLE 2: TAIWAN LIF IMPLEMENTATION IMPACT ANALYSIS ON MSCI ALL COUNTRY
FAR EAST ex JAPAN (AC FAR EAST ex JAPAN) INDEX IN 2 PHASES
----------------------------------------------------------------------
Current: Phase 1:
Taiwan's LIF = 0.55 Taiwan's LIF = 0.75
-------------------- ------------------------------
-------------------Index Mcap---Index---Index Mcap--Index---One-way
-------------------USD mm-----Weight----USD mm----Weight---Index
---------------------------------------Turnover
----------------------------------------------------------------------
KOREA 166,565 27.28% 166,565 25.79% 0.75%
----------------------------------------------------------------------
HONG KONG 122,452 20.05% 122,452 18.96% 0.55%
----------------------------------------------------------------------
TAIWAN 104,922 17.18% 140,228 21.71% 2.26%
----------------------------------------------------------------------
CHINA 74,150 12.14% 74,150 11.48% 0.33%
----------------------------------------------------------------------
SINGAPORE 61,310 10.04% 61,310 9.49% 0.27%
----------------------------------------------------------------------
MALAYSIA 38,967 6.38% 38,967 6.03% 0.17%
----------------------------------------------------------------------
THAILAND 23,621 3.87% 23,621 3.66% 0.11%
----------------------------------------------------------------------
INDONESIA 14,095 2.31% 14,095 2.18% 0.06%
----------------------------------------------------------------------
PHILIPPINES 4,534 0.74% 4,534 0.70% 0.02%
----------------------------------------------------------------------
AC FAR EAST ex
JAPAN 610,615 645,922 4.53%
----------------------------------------------------------------------
Phase 2:
Taiwan's LIF = 1.00
------------------------------
------------------------Index Mcap---Index---One-way
-------------------------USD mm------Weight---Index
------------------------------------Turnover
----------------------------------------------------------------------
KOREA 166,565 24.10% 0.85%
----------------------------------------------------------------------
HONG KONG 122,452 17.71% 0.62%
----------------------------------------------------------------------
TAIWAN 185,584 26.85% 2.57%
----------------------------------------------------------------------
CHINA 74,150 10.73% 0.38%
----------------------------------------------------------------------
SINGAPORE 61,310 8.87% 0.31%
----------------------------------------------------------------------
MALAYSIA 38,967 5.64% 0.20%
----------------------------------------------------------------------
THAILAND 23,621 3.42% 0.12%
----------------------------------------------------------------------
INDONESIA 14,095 2.04% 0.07%
----------------------------------------------------------------------
PHILIPPINES 4,534 0.66% 0.02%
----------------------------------------------------------------------
AC FAR EAST ex JAPAN 691,278 5.14%
----------------------------------------------------------------------
Note: Data as of the close of June 2, 2004
*T
For further information on MSCI indices or MSCI data, please visit
our web site at www.msci.com.
NOTICE AND DISCLAIMER
This information is the property of Morgan Stanley Capital
International Inc. (MSCI). The information may not be used to verify
or correct data, or any compilation of data or index or in the
creation of any indices. Nor may it be used in the creating, offering,
trading or promotion of any financial instruments or products. This
information is provided on an "as is" basis, and the user of this
information assumes the entire risk of any use made of this
information. It is not a recommendation to participate in any
particular trading strategy. Neither MSCI, its affiliates nor any
other party involved in the making or compiling of the information
(the "MSCI Parties") guarantees the accuracy and/or the completeness
of any of this information. None of the MSCI Parties makes any express
or implied representations or warranties, and each MSCI Party hereby
expressly disclaims all warranties of merchantability or fitness for a
particular purpose with respect to any of this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have
any liability for any damages of any kind even if notified of the
possibility of such damages.
Morgan Stanley Capital International, MSCI and all other service
marks referred to herein are the exclusive property of MSCI and its
affiliates. All MSCI indices are the exclusive property of MSCI and
may not be used in any way without the express written permission of
MSCI.
Morgan Stanley, a global financial services firm and a market
leader in securities, asset management, and credit services, is the
majority shareholder of MSCI, and The Capital Group Companies, Inc., a
global investment management group, is the minority shareholder.
--30--FLB/ny*
CONTACT: MSCI
Amy Davidson, New York +1 212 762 5790
Sara Corsaro, London +44 20 7425 6660
Jammy Chan, Hong Kong +852 2848 6740
Olivia Vong, Tokyo +813 5424 5470
or
Abernathy MacGregor
Kayt Makosy/Ed Rowley, New York +1 212 371 5999
Luther Pendragon
Daniel Guthrie/Beany McLean, London +44 20 7618 9100
KEYWORD: NEW YORK SWITZERLAND INTERNATIONAL EUROPE
INDUSTRY KEYWORD: BANKING
SOURCE: MSCI
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18Jun04 23:08 GMT
Source BW Business Wire
Categories:
MST/I/BNK MST/L/EN MST/R/CH MST/R/EU MST/R/US/NY TGT/BWN
REUTERS MSCI to boost Taiwan weighting in index [DKKXTBG]
NEW YORK, June 18 (Reuters) - Global stock index compiler
MSCI on Friday said it would raise the weighing of Taiwan
stocks in its widely followed MSCI Emerging Markets index, a
move that will likely boost Taiwan issues as money managers
adjust their portfolios in line with the index.
MSCI, or Morgan Stanley Capital International Inc.,
majority owned by Wall Street firm Morgan Stanley <MWD.N>, said
it would remove the Limited Investability Factor now applied to
the MSCI Taiwan Index, in two stages. The first phase will take
effect on Nov. 30, while the second phase will take effect on
May 31, 2005.
Big News:
MSCI TO REMOVE IN TWO PHASES THE LIMITED INVESTABILITY FACTOR
(LIF) CURRENTLY APPLIED TO THE MSCI TAIWAN INDEX
Geneva, June 18, 2004.
MSCI announced today that, having completed a consultation with investors worldwide, it has decided to remove the Limited Investability Factor (LIF) currently applied to the MSCI Taiwan Index.
The change will be implemented in two separate phases. In the first phase, MSCI will increase the LIF from 0.55 to 0.75 as of the close of November 30, 2004; in the second phase, MSCI will increase the LIF from 0.75 to 1 as of the close of May 31, 2005.
MSCI’s decision to remove the LIF currently applied to the MSCI Taiwan Index recognizes that significant developments have taken place to relax foreign investment restrictions in Taiwan over the past few years.
While some investment constraints continue to exist, their impact is not significantly different from those existing in other emerging markets and as such do not justify continuing to maintain the LIF currently applied to the MSCI Taiwan Index. However, MSCI will continue to monitor developments in Taiwan and will also monitor market participants’ experiences related to the implementation of the first phase of the LIF increase.
Publication of Provisional Indices
In order to assist market participants in understanding and preparing for these changes, MSCI will begin publishing on September 1, 2004, provisional indices based on the full removal of the LIF for the following composite indices: MSCI Emerging Markets (EM), MSCI AC Far East ex Japan, MSCI AC Asia Pacific ex Japan, and the MSCI Taiwan Index.
The provisional indices may be used by clients who wish to measure performance based on the full removal of the LIF ahead of MSCI’s official implementation schedule.
Pro forma impact of the removal of the LIF on the MSCI Emerging Markets (EM) and MSCI All Country Far East ex Japan Indices Tables 1 and 2 are provided for illustrative purposes only and show the pro-forma weights of various countries and regions in the MSCI Emerging Markets and MSCI All Country Far East ex Japan Indices, as of June 2, 2004, as a result of the LIF removal in two phases.
In addition, the two tables show the pro forma transition turnover in the MSCI Emerging Markets (EM) and MSCI All Country Far East ex Japan Indices that result from the two-phase removal of the LIF and the distribution of this turnover across the different constituent countries and regions.
Please note that the turnover data shown is specific to the current MSCI Emerging Markets (EM) and MSCI All Country Far East ex Japan Indices and is not indicative of the turnover in any other MSCI index.
***THE TABLES and the rest of the release are here (PDF file):
http://www.msci.com/pressreleases/archive/20040618_pr.pdf
REUTERS Taiwan stocks bounce off 1-mth low as techs rise [DKJMHLW]
TAIPEI, June 17 (Reuters) - Taiwan stocks rebounded from the
last session's one-month low on Thursday as investors set aside
concerns over lurking bad corporate debt and hunted for
technology sector bargains.
The TAIEX <.TWII> share index was up a provisional 1.99
percent at the 0530 GMT closing bell before finally ending with a
gain of 104.19 points, or 1.87 percent, to 5,664.35.
The electronics subindex <.TELI> was among the
best-performing sectors with a 2.25 percent rise as battered
heavyweights like AU Optronics <2409.TW> and Taiwan Semiconductor
Manufacturing Co (TSMC) <2330.TW> lit up the active list.
Top contract microchip maker TSMC, which has tumbled nearly
30 percent from September highs despite posting record revenues
for the past two months and the best profit margins in four
years, added 1.84 percent to close at T$44.30.
(US$1 = T$33.7)
((Reporting by Michael Kramer, editing by Kirby Chien;
michael.kramer@reuters.com; Reuters Messaging:
michael.kramer.reuters.com@reuters.net; +886 2 2508-0815))
FACTBOX-Details of Taiwan's $18 bln arms budget
TAIPEI, June 17 (Reuters) - A Taiwan parliamentary
delegation leaves for the United States on Thursday to meet
Pentagon officials and discuss a proposed $18 billion arms deal
to counter China's growing military threat.
The following are the proposed items in the package. If the
deal goes through, it would be the biggest U.S. arms sale to
Taiwan in a decade.
ITEM...........................AMOUNT.....BUDGET.......DELIVERY
Diesel-engine submarines.....8........T$412.14 bln...2005-2019
PAC-3 anti-missile*..........6........T$144.92 bln...2005-2012
P-3C Orion aircraft*.........12.......T$53.04 bln....2005-2011
---------------------------------------------------------------
- TOTAL...............................T$610.1 bln (US$18.2 bln)
NOTE:
* Patriot Advanced Capability-3 anti-missile systems and the
P-3C Orion aircraft are made by Lockheed Martin Corp.
(US$1=T$33.6)
Schwab Soundview re: TSM
Schwab Soundview Capital Markets (ASKJ, ISSI, TSM, IBM, QSFT, RHAT, JNPR, BA)
15 Jun 2004, 07:43am ET
- - - - -
TSM: Reit Outperform - We believe TSMC`s business remains strong with order strength continuing and no signs of wafer start cancellations. We believe the company is on track to meet guidance in 2Q and could grow revenues by 15% quarter over quarter in 3Q.
Despite recent market chatter, our channel checks suggest TSMC`s business remains strong & the co. isn`t seeing any wafer start cancellations as customers are still clamoring for allocations. We estimate that TSMC`s current wafer start capacity is running ~15%--20% below demand. We believe 2Q remains on track to meet guidance of units up 10% & ASPs up low single digits. We believe wafer starts in 2Q remain strong and revenues could grow by about 15% q/q in 3Q. We believe that TSMC is one of the most attractively valued companies in our coverage universe, currently trading at 12.6x our 2004 EPS estimate of $0.60. From a book value perspective, TSMC is trading at 3.3x book value of $2.24 (about 2.8x 4Q04 projected book value), near 2002 trough levels of 2.3x.
I was afraid that the bottom was not in during May. This sell off is still going. I'm not sure what the psychology in play here is, but at some point, when the elections draw near over here in the US, Asia is going to get attention again beyond just Japan.
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Taiwan Stock Exchange:
http://en.wikipedia.org/wiki/Taiwan_Stock_Exchange
Taiwan Stock Exchange
From Wikipedia, the free encyclopedia
The Taiwan Stock Exchange Corporation (TSEC) is a financial institution, located in Taiwan, Republic of China, located at 17 Po-Ai Road, Taipei, Taiwan. The TSEC was established in 1961 and began operating as a stock exchange on 9 February 1962.
The current chairman of the TSEC is Mr. Sean Chen.
Taiwan Stock Exchange Official Site:
http://www.tse.com.tw/ch/index.php
Yahoo charts (TWII is real time - SSE is not):
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Taiwan specific News Link:
http://asia.news.yahoo.com/taiwan.html
http://www.worldjournal.com/wj-twnews.php (Chinese Version)
HK: Hang Seng Index
http://www.hsi.com.hk/
http://asia.news.yahoo.com/hong-kong.html
http://asia.news.yahoo.com/china.html
Chinese Stocks(in Chinese):
http://www.worldjournal.com/pages/fn_asianmkts
Key Issues: US Eastern Daylight Time = 12 hours opposite of Taipei
UTC/GMT Offset Standard time zone: UTC/GMT +8 hours
http://www.timeanddate.com/worldclock/city.html?n=241
http://hk.myblog.yahoo.com/beautiful-mandy
Reason for Live http://www.youtube.com/watch?v=ut3AhmclYNc&NR=1
Bo_Event_薄熙来 http://ap.ntdtv.com/b5/20120311/video/90843.html
NK_Rocket http://v.ifeng.com/v/cxwx/index.shtml#28c82bd3-5f51-4a9c-ab63-7dbbd0040199
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