Parts of Taiwan's civil aviation sector are experiencing severe turbulence, with carriers reporting falling passenger numbers and one of its highest profile constructors seeking a quick sale to avoid insolvency. Plans by the government and private shareholders to sell off 80% of Sino Swearingen Aircraft Corporation (SSAC) for just $150m to a venture company in the United Arab Emirates have been given…
Taiwan is confident it can ride out the worst effects of the US credit crisis and any slowing of the world's biggest economy, with its exposure to various markets providing a safety net. On March 18, the cabinet-level Financial Supervisory Commission (FSC) issued a statement saying the impact of the US subprime crisis on Taiwan's financial sector had been limited, with losses totaling $810m. Of this,…
Abu Dhabi made major advances this year in terms of government policy, structure and economic initiatives. Changes in 2007 were focused on the government's continued effort to diversify and build a sustainable economy bolstered by foreign direct investment in multiple industries. In the beginning of the year, Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, revamped…
Taiwan's main capital markets have felt the pinch of the global financial turmoil in 2008, with the stock market plunging in the second half of the year and bond yields approaching all-time-lows. However, the underlying strength of the economy combined with efforts to further expand and liberalise the markets could see a return to growth in 2009. The activities of Taiwan's capital markets are monitored…
Taiwan is planning to open its doors to direct investment from mainland China, which is the latest and most significant step in the recent economic rapprochement between the two states. On August 20, Fu Dong-cheng, the vice chairman of Taiwan's Mainland Affairs Council (MAC), announced the government would be making public draft plans to allow Chinese investment in the Taiwanese economy. After…
Taiwanese shares had risen to their highest level in six years by the time the market closed on December 4. The main impetus for the rise were expectations of friendlier ties with Mainland China after the 2008 elections and a perceived undervalued market, highlighted by an approach to take a well known technology firm private. The local benchmark closed at 7647.01 points, rising 0.4% in the days trading.…
Taiwan’s memory chip suppliers are expecting strong demand in 2007 following the release of Microsoft’s new operating system, which is seen as a key driver of the market. Japan’s memory chip maker, Elpida and Taiwan’s Powerchip Semiconductor Corp announced a $14bn joint venture on December 7. The project involves setting up four chip foundries in Taiwan with the aim of…
On January 4, two subsidiaries of Rebar Asia Pacific Group filled for bankruptcy protection, triggering a bank run on an affiliated bank. This has highlighted corporate governance concerns, in a sector where many investors see potential, and could increase the pace of regulatory reform. Customers who held deposits with Chinese Bank, part of the Rebar group, withdrew around $500m in one day according…
Last week it was reported that Taiwan and China were close to an agreement that would allow Chinese tourists to visit Taiwan directly. Media reports in China suggested the deal would be announced soon. However, officials have explained that the two sides still need to agree on certain formalities. Currently, around 600 Chinese tourists visit Taiwan each day since Taiwan sanctioned this in 2002. Chinese…
The week-long holiday celebrations that mark Chinese New Year are considered the most important time of the year for Taiwanese retailers. As people across the country bought lavish foods and gifts to celebrate the year of the pig, retailers are expected to have done well. The New Year Shopping Carnival in Taipei, which ran for two weeks prior to Chinese Lunar New Year, is largest of its kind in Taiwan…
