Half of Taiwanese companies report investment loss in China

TWSE and TPEX-listed Taiwanese companies found returns from investing in China not as good as years ago

TAIPEI (Taiwan News) - Approximately 50 percent of 1,275 Taiwanese companies which are listed on the Taiwan Stock Exchange (TWSE) and the Taipei Exchange (TPEX) reported losses from investing in China for the first half of 2018, said Liberty Times from studying the companies' semiannual reports.

According to LTN, approximately 80 percent of TWSE and TPEX-listed Taiwanese companies have direct investments in China.

The report observes that fewer and fewer listed Taiwanese companies report gains from investing in Chinese companies over the 10-year period, from 2008 to the first half of 2018.

727 TWSE-listed companies recorded gains of NT$133 billion (US$4.33 billion) from investing in 4,589 Chinese companies in the first half of 2018, smaller than the same period of previous years. The report also found a trend of centralized gains in a few Taiwanese companies.

Foxconn Industrial Internet (FII), which is backed by Hon Hai Precision Industry Company, for example, reported gains of nearly NT$23 billion (US$0.75 billion) in 2018 H1, accounting for more than 17 percent of the total gains recorded by TWSE-listed companies who invested in China. However, Hon Hai only transferred 7 percent of the gains back to Taiwan during the same period of time.

On the other hand, Hon Hai is the top investor in China, whose cumulated capital export reached NT$203.2 billion (US$6.61 billion), followed by Taiwan Semiconductor Manufacturing Company's (TSMC) NT$49.4 billion (US$1.61 billion), Fubon Financial Holding's NT$49.3 billion (US$1.60 billion), Taiwan Cement's NT$47.6 billion (US$1.55 billion), and Nan Ya Plastics' NT$41 billion (US$1.33 billion).

The cumulated capital export for foreign direct investment from TWSE and TPEX-listed Taiwanese companies to China has reached nearly NT$2.3 trillion (US$74.8 billion).