MSCI cuts Taiwan weighting
Morgan Stanley Capital International (MSCI) Inc said on Wednesday it was cutting Taiwan’s weighting in two of its major indexes.
After this month’s semi-annual index review, MSCI said it decided to downgrade Taiwan’s weighting in the MSCI Asia-Pacific Index (excluding Japan) by 0.2 percentage points to 18 percent, while Taiwan’s weighting in the MSCI Emerging Markets Index would be cut by 0.1 percentage points to 10.4 percent.
The adjustments will become effective on Nov. 30.
MSCI is also adding seven Taiwanese stocks to the Asia Pacific Index — China Motor Corp (中華汽車), Sino-American Silicon Products Inc (中美矽晶), China Petrochemical Development Corp (中石化), Highwealth Construction Corp (興富發建設), LCY Chemical Corp (榮化), Tainan Spinning Co (南紡) and Nan Kang Rubber Tire Co (南港輪胎).
The seven are part of 43 stocks that MSCI is adding to the index.
MSCI is also removing three Taiwanese stocks from the Asia Pacific Index — Chinese Gamer International Corp (中華網龍), Compal Communications Inc (華寶通訊) and Micro-Star International Co (微星科技).
In Taipei trading, the TAIEX declined 13.68 points, or 0.16 percent, to close at 8,436.95 points, on NT$105.09 billion (US$3.497 billion) in trading volume.
Formosa expanding in China
Formosa Plastics Group (台塑集團), the nation’s biggest diversified industrial company, plans to invest US$2.3 billion in chemical plants in Ningbo, China, and is seeking approval from the Taiwanese and Chinese governments.
The projects have passed China’s environmental assessment, Formosa Chemicals and Fibre Corp (台灣化纖) president Hong Fu-yuan (洪福源) said yesterday.
“We hope to start construction next year,” Hong said by telephone. “Construction may be completed in three years.”
The group already has plants in China making plastic products such as polyvinyl chloride, used in window frames and floors.
The new Ningbo projects include an additional PVC plant and factories that will make purified terephthalic acid and acrylonitrile butadiene styrene, Hong said.
FSC raises investment ceiling
The Financial Supervisory Commission (FSC) yesterday raised the investment ceiling in public works projects by domestic insurance firms from 10 percent to 25 percent of the investee’s net worth.
The commission said the relaxation is aimed at guiding private money to public construction and helping insurance firms better utilize idle funds.
The commission will also allow insurance firms to issue securities backed by construction projects and own a stake of up to 10 percent.
Polaris to open HK subsidiary
Polaris MF Global Futures Co (寶來曼氏期貨) has won regulatory approval to establish a subsidiary in Hong Kong, a statement by the Financial Supervisory Commission said yesterday.
Polaris MF Global Futures, created in 1997, specializes in onshore and offshore futures and options products. The company still needs to obtain permission from the Hong Kong regulator for the subsidiary.
NT rises against US dollar
The New Taiwan dollar gained ground against the US dollar yesterday, rising NT$0.068 to close at NT$30.532, on turnover of US$754 million.
The central bank intervened again to shore up the US dollar, as it has done several times recently, to prevent the NT dollar from rising too rapidly, dealers said.
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