Text / Hong Lingxiang
According to the “Financial News” report, at 12:30 on September 1, Taiwan time, the Kinmen garrison shot down a Chinese drone that invaded the narrow waters of Shiyu Island for the first time; the US financial site Bloomberg did not take he wrote an article lightly and immediately, pointing out that this is concrete proof of the “escalation of geopolitical risks” between Taiwan and China.
“Financial News” reported that since the beginning of the war between Russia and Ukraine, Taiwan has not only been accused of being the next hotspot for war, but has also caused the continued withdrawal of foreign capital from Taiwan’s capital market. From January to August this year, foreign investment in Taiwanese equities surpassed the Taiwanese trillion dollar, the largest capital market in Asia.
“My friends from overseas intermediaries have a deep sense of helplessness this year; no matter how good the physicist and prospects in Taiwan’s semiconductors, biotechnology and finance are, customers are asking you to withdraw from Greater China.” , in an interview with Caixun, admitted that geopolitical risks in the Taiwan Strait have become a part of the fundamentals and fund managers may not decide to buy or sell, but elevate the overall allocation decision to the long-term investment level. The number has continued to increase, but the number of institutional people commenting on Taiwanese stocks has continued to decline in recent years.
“If you are an investment director of a pension fund in the United States or Europe, and you see news on Bloomberg and CNN that military planes and warships from the United States, China and Taiwan have entered territorial waters and airspace of each other, not only will the money be withdrawn from China, but it will also be reduced. Taiwan code. “
“Financial News” reported that Li Hongji noted that foreign investors who previously preferred to invest in Taiwanese stocks usually achieved cash returns of more than 4%. However, as the dollar has appreciated and the US has raised interest rates since the beginning of this year, the yield on US 10-year bonds is expected to return to 4%; and Taiwan stocks still present geopolitical risks, incentives for high yields are negligible.
Therefore, according to the analysis of “Financial News”, companies need to be more proactive in exposing their risk diversification plans to the outside world. At the end of September, the stock exchange and Quantum International will hold the 12th Taiwan CEO Week and 61 Taiwanese companies will explain how to deal with the political deadlock in the Taiwan Strait. It is understood that the entity’s legal entity will not ask aloud: “What if there is a war in the Taiwan Strait?” but “I hear your client (brand owner) asks you to diversify your risk, what’s your strategy?” Or ask, “Go to Southeast Asia. After you move, is there a next step?”
Li Hongji believes that different industries and companies have their own niche markets and political and economic considerations. As long as they can clearly explain to the outside world, it’s the best time to show off their business style. “Shares of Taiwanese companies are obviously the best listed in Taiwan, but business is Who has feet can move to the most favorable places, which is what Taiwanese businessmen have always been good at, and if they don’t think to these things, they will not be like Taiwanese businessmen. “
Further reading:
Kill the pot and run out! Taiwan shares closed 404 points lower, overseas sales topped NT $ 42 billion and fell to a 19-month intraday low
Foreign investors sold over 1 trillion yuan in Taiwanese stocks because they feared a cross-strait war. Xie Jinhe analyzed the signs revealed by the meeting with Xi Jinping
Beijing Talks Normalization of Military Exercises Taiwan Strait Dismantles Falsehood and Reality of CCP Blocking and Intimidation
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