Shift car stock symbol8/29/2023 Taiwan’s investment habits have gradually changed from trading-driven to allocation-driven, said Liu, who also started Taiwan’s first ETF fund 20 years ago. Liu’s fund has also identified “invisible champions” to watch within key sectors like precision industrials, medical devices, and tech firms related to chips, artificial intelligence and electric vehicles. Warren Buffett’s investment in Japanese trading companies has prompted foreigners to flock into some of the nation’s large caps with global competitiveness. Japan can help offset previous positions in China, and the market’s strong fundamentals present more long-term investment potential than before, he said. Liu has chosen Japan as the next “core market” given the importance of the world’s third-largest economy and its close ties with Taiwan as a trading partner. “With the change in the political and economic situation in China, we must rethink an alternative market outside of China,” said Liu, whose firm oversees NT$1.12 trillion of assets, making it the largest fund company in Taiwan, according to SITCA data as of May. Tensions between the world’s two biggest economies are also discouraging investors, with Chinese warplanes flying this week into sensitive areas around Taiwan the latest example of that. Investors are turning away from China due to its sluggish economy, as seen in weak consumer spending, a rickety property market and lackluster exports. Taiwan banks’ exposure to China also dropped to NT$1.05 trillion as May, a 15% decrease from a year earlier. “But with more understanding of Japan’s economy, industries and companies, investors can now earn capital gains through investing in Japan.”Ĭhina remains the second-most popular overseas destination for Taiwanese investors after the US, but their holdings are declining: the island’s funds cut their China exposure by 14.6%, the equivalent of NT$39.2 billion this year, according to Taiwan’s Financial Supervisory Commission data as of May. “The impression of Japan has largely been about tourism” among Taiwanese people, said Julian Liu, chairman of Taipei-based Yuanta in an interview. Yuanta’s Japan fund provides an alternative for Taiwan investors, betting on companies including technology firms and medical device makers as the share market of Asia’s No. The strong demand for Japanese shares coincides with investors’ pullback from Chinese stocks as the world’s second-largest economy struggles to recover, while US-China tensions over Taiwan show little signs of abating. That also makes it the biggest of any of the island’s funds targeting foreign equities, according to industry group SITCA data. Yuanta Securities Investment Trust Co., Taiwan’s largest fund company by assets managed, gathered its targeted NT$20 billion ($638 million) by Friday after a week of public offering, a company statement shows. (Bloomberg) - A Taiwanese firm has sold the island’s biggest Japan equity fund, reflecting local investors’ keen demand for their neighbor’s booming share market as they retreat from China.
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