Stocks fell yesterday, dragging the TAIEX to its longest losing streak since November on concern that China will limit lending to some industries, curbing economic growth.
China Steel Corp (
"Taiwan suffered a direct hit from China's attempt to cool its economy because of Taiwan's close economic ties with China," said Fam Hsieh, a fund manager at Grand Cathay Securities Trust Co (
The TAIEX shed 88.04, or 1.4 percent, to 6,029.77. The index has slumped 11 percent in the last six days. Almost five stocks fell for every one that gained. Taiwan Index futures, due in May, shed 0.1 percent to 6,017.
China Steel lost 3.7 percent to NT$28.50. China, which has the world's sixth-biggest economy, is the destination for as much as 40 percent of China Steel's exports. AU Optronics, the country's largest maker of liquid crystal displays, fell 5.2 percent to NT$64.50.
Formosa Plastics Corp (台塑), the nation's largest maker of poly-vinyl chloride, fell 1.1 percent to NT$47 after a Chinese-language newspaper reported Chinese banks were reluctant to take part in a US$285-million syndicated loan the company is seeking to finance a petrochemical plant in China. Formosa declined to comment.
Taiwan Semiconductor Manufacturing Co (台積電), the world's largest supplier of made-to-order computer chips, gained 0.9 percent to NT$58 after the government on Friday approved company plans to invest US$898 million in opening its first chip-making plant in China.
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