Thu, Mar 15, 2001 - Page 17 News List

Cross-strait capital flow unbalanced

ONE-WAY STREET While capital continues to flood across the Strait to China, very little appears to be coming back into Taiwan

By Stanley Chou  /  STAFF REPORTER , WITH CNA

While NT$122.8 billion was invested in China by Taiwan's listed companies by the third quarter last year, only NT$777 million 0.63 percent has actually returned to Taiwan, officials said yesterday.

The Ministry of Finance and Central Bank of China was submitted during a China investment policy meeting of the Legislative Yuan's Finance Committee yesterday Yen Ching-chang (顏慶章), finance minister and Peng Fai-nan (彭淮南), governor of Central Bank of China both attended the meeting.

In addition, the Securities and Futures Committee under the Finance Ministry also disclosed in the report that through the third quarter of last year, 236 listed companies or 44.95 of all Taiwan Stock Exchange listed companies have investments across the strait.

These companies had invested a total of NT$113.7 billion in China. Some 13 listed companies reported remitting money back to Taiwan, or a merely NT$629 million.

Meanwhile, on the over-the-counter TAISDAQ market, 69 listed companies, or 24.3 percent, made investments in China, for a total of NT$9.1 billion.

Five of them remitted NT$148 million back to Taiwan to date.

Meanwhile, a local lawmaker complained yesterday that leading Taiwan companies which have made prominent investments in mainland China, including the Chi Mei Group (奇美集團), "have not remitted their profits generated from the mainland operations back to Taiwan."

New Party Legislator Hsieh Chi-tah (謝啟大) asked Finance Minister Yen for "an explanation" on investments made in mainland China by the Chi Mei Group, the Formosa Plastics Group (台塑集團) and the Yuan Ta-Core Pacific Consortium (元大京華集團).

According to a written report compiled by the Ministry of Finance, the Chi Mei Group channeled some NT$1.79 billion (US$55.97 million) into mainland China between July 1997 and February 2001, for a total of nine investment projects, including petrochemical processing and food processing. The group so far has not remitted any money back to Taiwan.

FPG, a local petrochemical giant, had pumped some NT$5.49 billion (US$171.56 million) into mainland China as of the third quarter of 2000, for 13 investment projects, mostly in petrochemical processing, textiles and computer manufacturing. None of the investment returns have been remitted back to Taiwan.

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