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China Motors leads gainers after Jiang speech

Stocks advanced after Chinese President Jiang Zemin (江澤民) reiterated Beijing's commitment to opening transportation links with Taiwan and called for the resumption of talks to resolve the dispute over control of the island.

China Motors Co (中華汽車) surged by its daily limit, leading gains among companies with businesses in China.

"Jiang's remarks showed China is willing to set aside some political issues to talk to Taiwan," said Chen Hsien-chih, who manages Grand Cathay Securities Investment Trust Co's (大華投信) NT$1.6 billion (US$46.3 million) Hi-Tech Fund. "That bolstered investor confidence in so-called China-play stocks.''

Nearly 40 percent of Chen's holdings are in companies that have businesses in China, such as China Motor and Yulon Motor Co (裕隆汽車).

The benchmark index added 53.03, or 1.11 percent, to close at 4,811.01. About three shares rose for every one that fell. The index climbed 6.9 percent this week and has risen 25 percent since its 12-month low on Oct. 11.

Hua Nan Financial Holdings Co (華南金控) gained after the government raised about NT$26 billion selling shares in International Commercial Bank of China (中國商銀) at a 15 percent premium to the lender's closing stock price on Thursday.

Hua Nan Financial jumped NT$1.4, or 6.6 percent, to NT$22.60.

International Commercial Bank of China climbed NT$1.2, or 5.6 percent, to NT$22.80.

China Motors climbed NT$3, or 6.1 percent, to NT$52.50, its highest in almost four years. Yulon Motor surged NT$2.20, or 5.9 percent, to NT$40.10, its highest since Dec. 9, 1998.

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) fell NT$0.50, or 1 percent, to NT$51. The government will meet next week on whether to require companies to count share bonuses for employees as a cost, a Chinese-language newspaper reported. A change in accounting rules could cut profit by up to 30 percent for companies such as TSMC, the paper said.

Formosa Chemicals & Fibre Corp (台塑化纖) rose NT$0.90, or 2.9 percent, to NT$32. The company said October sales rose 39 percent to NT$7.9 billion, from NT$5.7 billion in October last year.
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