Taiwanese stocks are poised for a “golden decade” with the cross-strait Economic Cooperation Framework Agreement (ECFA) paving the way for further cooperation with other countries, CLSA Asia-Pacific Markets said.
The TAIEX is expected to pass its “key historical resistance” of 10,000 between this year and 2019, with a short-term target of 6,800, the brokerage said in a report. China and Taiwan signed the ECFA in June.
catalysts
“Key catalysts that would push the benchmark index over 10,000 include further trade liberalization and economic cooperation in subsequent rounds of the ECFA,” analysts led by Nicholas Teo (趙長順) said in the report yesterday, advising investors to buy Taiwanese shares toward the end of the year or early in the first quarter of next year when stocks bottom.
CLSA said the ECFA is a “springboard” that could be used to start other economic agreements and cooperation with other countries.
discussions
Earlier this month, Taiwan and Singapore said they are exploring an economic agreement and the two will meet later this year for discussions, an e-mailed statement issued by their respective trade offices said.
“It’s a milestone for Taiwan for sure,” Peter Kurz, head of the Citigroup Inc’s research team, said in a Bloomberg Television interview yesterday.
“It’s the beginning of the reversal of the years of isolation of the economy, which had led to the stagnation of the economy as well,” he said.
The popular Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) arbitrage trade might soon see a change in dynamics that could affect the trading of the US listing versus the local one. And for anyone who wants to monetize the elevated premium, Goldman Sachs Group Inc highlights potential trades. A note from the bank’s sales desk published on Friday said that demand for TSMC’s Taipei-traded stock could rise as Taiwan’s regulator is considering an amendment to local exchange-traded funds’ (ETFs) ownership. The changes, which could come in the first half of this year, could push up the current 30 percent single-stock weight limit
EARLY TALKS: Measures under consideration include convincing allies to match US curbs, further restricting exports of AI chips or GPUs, and blocking Chinese investments US President Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under former US president Joe Biden to limit Beijing’s technological prowess. Trump officials recently met with their Japanese and Dutch counterparts about restricting Tokyo Electron Ltd and ASML Holding NV engineers from maintaining semiconductor gear in China, people familiar with the matter said. The aim, which was also a priority for Biden, is to see key allies match China curbs the US
Teleperformance SE, the largest call-center operator in the world, is rolling out an artificial intelligence (AI) system that softens English-speaking Indian workers’ accents in real time in a move the company claims would make them more understandable. The technology, called accent translation, coupled with background noise cancelation, is being deployed in call centers in India, where workers provide customer support to some of Teleperformance’s international clients. The company provides outsourced customer support and content moderation to global companies including Apple Inc, ByteDance Ltd’s (字節跳動) TikTok and Samsung Electronics Co Ltd. “When you have an Indian agent on the line, sometimes it’s hard
‘SACRED MOUNTAIN’: The chipmaker can form joint ventures abroad, except in China, but like other firms, it needs government approval for large investments Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) needs government permission for any overseas joint ventures (JVs), but there are no restrictions on making the most advanced chips overseas other than for China, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. US media have said that TSMC, the world’s largest contract chipmaker and a major supplier to companies such as Apple Inc and Nvidia Corp, has been in talks for a stake in Intel Corp. Neither company has confirmed the talks, but US President Donald Trump has accused Taiwan of taking away the US’ semiconductor business and said he wants the industry back
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