EQUITIES
Foreigners continue to buy
Foreign institutional investors last week bought a net NT$64.94 billion (US$2.11 billion) of local shares after buying a net NT$5.99 billion the previous week, the Taiwan Stock Exchange said in a statement yesterday. The top three shares bought by foreign investors last week were China Airlines Ltd (中華航空), EVA Airways Corp (長榮航空) and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), while the top three sold were Shin Kong Financial Holding Co (新光金控), Wistron Corp (緯創) and Acer Inc (宏碁), the exchange said. As of Friday last week, foreign investors had bought NT$432.59 billion of local shares since the beginning of this year, while the market capitalization of shares held by foreign investors was NT$22.29 trillion, or 41.13 percent of total market capitalization, it said. Yesterday, foreign institutional investors sold a net NT$4.43 billion of shares, the exchange said.
TECHNOLOGY
Huawei shuts flagship store
Huawei Technologies Co (華為) has closed its flagship experience store in Taipei’s Syntrend Creative Park (三創園區), leaving only one outlet in Taiwan, as the Chinese tech giant adapts its marketing strategy. The Syntrend branch, which was next to Guanghua Digital Plaza in the city’s Bade District (八德), closed its doors on Sunday. After the branch’s closure, Huawei’s products and repair services would still be available at some chain retailers and on e-commerce platforms, said Xunwei Technologies Co (訊崴), which distributes Huawei’s products in Taiwan. At the peak of its presence in Taiwan in 2019, Huawei had 13 experience stores and three customer service centers, but it has since scaled back its business operations. The company has also come under intense scrutiny in Taiwan due to national security concerns.
BANKING
Mega Bank plans Thai boost
State-run Mega International Commercial Bank (兆豐銀行) has approved plans to increase the capital of its subsidiary in Thailand by 100 million shares, or 1 billion baht (US$28,752,569), to boost its capital and competitiveness. The banking arm of Mega Financial Holding Co (兆豐金控) said the cash injection would raise the capital of its Thai subsidiary to 5 billion baht. The Thai subsidiary has operated for 76 years and owns four branches in different parts of Thailand, which serve retail customers and corporate clients, the bank said last week. Meanwhile, Mega Bank said a spike in overseas travel among Taiwanese has boosted its credit card circulation and spending this year, especially for its signature credit card, which offers an unlimited 3 percent rebate on overseas spending.
ELECTRIC VEHICLES
Delta to buy German firm
Power management solution provider Delta Electronics Inc (台達電) has agreed to acquire TB&C Group, a German provider of automotive hybrid components, for 142 million euros (US$155 million), the Taiwanese firm said on Thursday. The acquisition of TB&C, which develops hybrid technologies for mechanical components applied in automotive, industrial and medical applications, is expected to bolster its electric vehicle (EV) business portfolio, Delta said. The transaction would enhance the firm’s EV battery management system capabilities by integrating TB&C’s technologies with Delta’s automotive component product lines, it said. The acquisition is also expected to leverage both companies’ research and development and manufacturing resources to accelerate Delta’s overall EV business expansion, the company said.
When an apartment comes up for rent in Germany’s big cities, hundreds of prospective tenants often queue down the street to view it, but the acute shortage of affordable housing is getting scant attention ahead of today’s snap general election. “Housing is one of the main problems for people, but nobody talks about it, nobody takes it seriously,” said Andreas Ibel, president of Build Europe, an association representing housing developers. Migration and the sluggish economy top the list of voters’ concerns, but analysts say housing policy fails to break through as returns on investment take time to register, making the
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
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
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
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