Business and Finance

Foxconn shares drop to lowest level in 7 years on Taiwan Stock Exchange

Foxconn shares slip amid weak demand for new iPhone, global trade tension

Taiwan News
Date: 2018/12/10
By: Scott Morgan, Taiwan News, Staff Writer

TAIPEI (Taiwan News) – Foxconn’s share price decreased by 2.03 percent to NT$67.70

Foxconn signage. (By Associated Press)

(US$2.19) on the Taiwan Stock Exchange (TWSE) today, marking its lowest level in seven years, reported CNA.

The price tumble comes amid concerns over weak sales of Apple’s new iPhone models, and broader concerns over U.S.-China trade relations.

A total of 33.77 million Foxconn shares changed hands during trading today, with the share price closing at NT$67.70. Foxcon’s market capitalization also decreased from NT$957.7 billion to NT$938.3 billion.

Foxconn, one of the world’s leading electronic contract manufacturing companies, is reported to be responsible for assembly of the majority of the new iPhone models.
[FULL  STORY]

Taiwan’s interest rates to remain intact in 2019: Standard Chartered

Focus Taiwan
Date: 2018/12/10
By: Chiu Po-sheng and Frances Huang 

Taipei, Dec. 10 (CNA) Taiwan’s central bank is expected to leave its key interest rates unchanged for 2019 because the global economy is expected to face some downside risks amid trade tensions between the United States and China, Standard Chartered Bank said on Monday.

In addition, uncertainty over the emerging economies is expected to make the central bank remain on alert over the global economic development and maintain its current monetary policy, the bank said.

In a conference held to forecast Taiwan’s economy, Tony Phoo (符銘財), a senior economist for East Asia of Standard Chartered Bank, cited the minutes of the central bank’s latest quarterly policymaking meeting held in late September as saying some directors and supervisors of the bank have adopted a cautious tone, fearing the local economy will slow down next year.    [FULL  STORY]

Meng’s arrest unnerves Taiwanese firms

Taipei Times
Date: Dec 11, 2018
By: Lisa Wang  /  Staff reporter

The arrest of Huawei Technology Co (華為) chief financial officer Meng Wangzhou (孟晚舟) in Canada has stoked fears of potential risks for Taiwanese companies in Huawei’s supply chain should the incident unravel a ceasefire in the US-China trade war, Jih Sun Securities Investment Consulting Co (日盛投顧) said yesterday.

Meng, the daughter of Huawei founder Ren Zhengfei (任正非), was arrested on Dec. 1 in Vancouver on an extradition warrant issued by the US on allegations that Huawei tried to evade US sanctions on Iran.

The incident could lead to the US banning imports of Huawei products or stricter restrictions on US manufacturers to limit the sale of key components to the Chinese company as was the case with telecommunications equipment supplier ZTE Inc (中興) earlier this year, Jih Sun said in a report.

US technology heavyweights, including Qualcomm Inc, Intel Corp, Broadcom Inc and Micron Technology Inc, supply chips to Huawei, which was last year the world’s No. 5 chip consumer, according to Gartner Inc, Jih Sun said.    [FULL  STORY]

Fuel prices in Taiwan to rise NT$0.2 per liter this week

Focus Taiwan
Date: 2018/12/09
By: Tsai Peng-min and Evelyn Kao

Taipei, Dec. 9 (CNA) Domestic gasoline and diesel prices will increase by NT$0.2

CNA file photo

(US$0.006) per liter this week, ending a seven-week falling streak, due to a hike in international crude oil prices, Taiwan’s two major suppliers said Sunday.

State-owned oil refiner CPC Corp., Taiwan said that after the adjustments, which will take effect at midnight Sunday, fuel prices at CPC gas stations nationwide will be NT$26.4 per liter for 92 octane unleaded, NT$27.9 per liter for 95 unleaded, NT$29.9 per liter for 98 unleaded and NT$24.2 per liter for super diesel.

International oil prices rose last week after the United States and China agreed to a 90-day truce in a trade dispute and Canada’s oil-producing province announced that it would cut oil production next year to bolster prices, CPC spokesman J.Z. Fang (方振仁) said.

The movement of oil prices in Taiwan in the short term will depend on the status of the trade issues between the U.S. and China and whether the major oil producing countries agree on production cuts, Fang said.    [FULL  STORY]

Fintech trial gains 50 applicants a day

NO BANK ACCOUNT NEEDED: Borrowers’ interest rates are set based on their telecom payment records and they are vetted using mobile identity authentication technology

Taipei Times
Date: Dec 10, 2018
By: Kao Shih-ching  /  Staff reporter

The nation’s first sandbox experiment with financial technology (fintech) innovations — which allows consumers to apply for small loans via mobile devices without bank accounts or credit records — began on Wednesday and has attracted more than 50 applicants per day since, the Financial Supervisory Commission (FSC) said.

The FSC is monitoring the experiment to see if impostor fraud occurs, the commission’s Department of Planning Director-General Lin Chih-chi (林志吉) told the Taipei Times by telephone on Friday.

The experiment was initiated by KGI Bank (凱基銀行) and Chunghwa Telecom Co (中華電信), and enables borrowers older than 20 to be reviewed by the bank using mobile identity authentication technology. After passing the review, they can obtain loans with interest rates set by the bank’s scoring model, which is linked to their telecom payment records.

KGI Bank, a subsidiary of China Development Financial Holding Corp (中華開發金控), said that the 50 applications per day met its expectations, but declined to reveal the number of loan approvals or how much money it has lent.    [FULL  STORY]

Taiwanese biomedical company develops 10-min drug test kits

The kits require only three drops of urine

Taiwan News
Date: 2018/12/08
By: Huang Tzu-ti, Taiwan News, Staff Writer

Quick drug test kits developed by Formosa Biomedica (Photo/CNA)

TAIPEI (Taiwan News) – Quick drug screening kits produced by a Taiwanese company have become a reliable force on the frontline against substance abuse for Taiwan authorities.

Prevention and screening systems assume important roles in the war on drugs, as illegal drugs have found their way into campuses, the military, and entertainment premises, reported CNA.

To avoid incidents where apprehended drug addicts may get away with it by switching their urine samples during the screening process, Formosa Biomedical Technology Corp. (台塑生醫) has developed a wide range of substance testing kits touted to be capable of determining whether one has been on drugs in 10 minutes and requiring just three drops of urine, the company said, adding that the devices boast a 90 to 95 percent accuracy rate.

According to Formosa Biomedical, screening kits it currently manufactured can be applied to detect traces of marijuana, morphine, amphetamines, and Ketamine, with more being developed.    [FULL  STORY]

Northern Taiwan housing market shows signs of contraction: poll

Focus Taiwan
Date: 2018/12/08
By: Wei Hsu and Frances Huang 

Taipei, Dec. 8 (CNA) The property market in northern Taiwan flashed a “blue light” in November, pointing to contraction amid political uncertainty over the Nov. 24 local government elections, according to a recent survey published in the real estate magazine My Housing.

Citing the survey, the magazine said there was decline in listings of new residential properties, listings of presale residential property projects, advertising for housing sales, and transactions, amid market pessimism in November.

According to the survey, the housing index for northern Taiwan fell 3.7 points in November from the previous month to 27.2 points, the lowest this year.

The index therefore flashed a blue light, which happens when it drops below 32 points, indicating contraction, the magazine said.    [FULL  STORY]

Taiwan exports end 24-month rise

U.S.-China trade war played part in sudden drop: MOF

Taiwan News
Date: 2018/12/07
By: Matthew Strong, Taiwan News, Staff Writer

Taiwan’s exports end 24 consecutive monthly increases. (By Central News Agency)
TAIPEI (Taiwan News) – Taiwan’s exports ended 24 consecutive months of increases by recording a drop of 3.4 percent for November, the government announced Friday.

The Ministry of Finance (MOF) identified lower-than-expected sales of high-end smartphones, a weakening of overseas investment needs, and the impact of the trade war between the United States and China as the three reasons why exports fell in November compared to the same period last year, the Apple Daily reported.

The value of exports for November totaled US$27.81 billion (NT$858.78 billion), a drop of 3.4 percent compared to November 2017 and of 5.9 percent compared to October 2018, according to MOF data.

However, for the period from January to November 2018, exports still rose from the same period last year to reach a total of US$307.46 billion (NT$9.49 trillion), the MOF stated Friday.    [FULL  STORY]

Taiwan calls on EU to push for bilateral investment agreement

Focus Taiwan
Date: 2018/12/07
By: Liao Yu-yang and Ko Lin

Taipei, Dec. 7 (CNA) Vice Economics Minister Wang Mei-hua (王美花) has called on the

Image taken from Pixabay

European Union (EU) to pursue the signing of a bilateral investment agreement (BIA) with Taiwan as soon as possible to create a favorable investment environment for both sides.

Wang, who was in Brussels for the 30th Trade Consultation Meeting between Taiwan and the European Union held Wednesday, said the EU supported the idea of an investment agreement, but several issues still need to be discussed, according to a statement issued by the Ministry of Economic Affairs (MOEA) Friday.

Among them, the EU has expressed concerns over Taiwan’s proposal to cut the feed-in tariff (FIT) rate for its offshore wind power sector, Wang said.

In November, the government released a proposal to reduce the 2019 FIT from NT$5.8 (US$0.189) per kilowatt hour (kWh) to NT$5.1.    [FULL  STORY]

Exports fall due to US-China dispute

HARD TARGET: An official said exports would likely continue to shrink this month and it would be very difficult to meet a forecast of 6.2 percent year-on-year growth

Taipei Times
Date: Dec 08, 2018
By: Ted Chen  /  Staff reporter

The nation’s exports last month contracted by 5.9 percent monthly and 3.4 percent annually to US$27.81 billion, halting a 24-month streak of consecutive growth as the effects of an ongoing US-China trade dispute begin to materialize, the Ministry of Finance said yesterday.

The unexpected decline was also attributed to a high base of comparison last year, as well as slowing external demand for machinery and lackluster market reception for Apple Inc’s new trio of iPhones, Department of Statistics Director-General Beatrice Tsai (蔡美娜) told a news conference in Taipei.

“Up until October, companies in most industries had been optimistic about the trade dispute, with some even expecting to benefit as customers divert orders away from China-based manufacturers,” Tsai said, adding that the ministry has detected a drastic shift in sentiment over the past month.

“Many companies have begun bracing for the effects on demand and consumption, even bellwethers such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電),” Tsai said.    [FULL  STORY]