■ Investment rules relaxed
Premier Yu Shyi-kun yesterday announced new measures that further relax restrictions on foreign investment in a bid to speed up the internationalization of the capital market. The new measures are awaiting the approval of the Legislative Yuan. One of the new measures allows foreign investors to apply for one-day loans with local banks so that they can close deals affected by different time zones. The government will also allow capital gains made on securities transactions by foreign investors to be cashed outside of the country, Yu said. As foreign investors are currently only allowed to diversify investment risk using a short hedge, Yu yesterday said the government would soon allow the long hedge to be used by investors to protect their stock investments. "Short hedge" refers to the sale of a futures or options contract to protect against the possibility of a decline in the price of securities or commodities yet to be sold. "Long hedge" refers to the purchase of futures to hedge against the sale of cash commodities.
■ Delegation off to Europe
The Ministry of Economic Affairs is scheduled to lead a trade delegation today to visit Eastern European countries, including Hungary, Slovakia, the Czech Republic and Russia. The Czech Republic and Hungary are Taiwan's No. 1 and No. 2 trade partners in Eastern Europe, the Board of Foreign Trade said. Taiwan's trade with the Czech Republic, for instance, amounted to US$330 million last year, up 20 percent from the previous year, it added. The two countries are also the most important destinations for foreign direct investment in the region. Taiwanese companies that have invested in the Czech Republic, such as Hon Hai Precision Industry Co (鴻海精密) and Asustek Computers Co (華碩電腦), are considering pouring in more capital in order to expand their investments, the statement said. The delegation will visit Russia on the last leg of its trip. Exports to Russia totalled US$82 million in the first quarter of this year, up 20.4 percent from last year, according to government figures.
■ Acer buys back more shares
Acer Inc, whose stock has slid 18 percent this year, said it plans to spend as much as NT$600 million (US$18 million) to buy back and cancel 10 million shares. Acer, the nation's third-largest computer maker by market value, plans to spend between NT$29.10 and NT$60 per share to buy back the stock from today through to July 17, Acer said in a statement to the Taiwan Stock Exchange. Acer bought 10 million shares at an average price of NT$44.9 a share in a similar buyback plan that started last Wednesday.
■ Chinfon raises Vietnam stake
The Chinfon Cement Haiphong Co, a joint venture between Vietnam and the Chinfon Group (慶豐集團), said yesterday that its plan to invest another US$162 million to double the capacity of its factory in Vietnam has been approved by the Vietnamese government. The money will be spent to build a second cement production line in Chinfon's factory in the northern port city of Hai Phong. The factory's current line is able to turn out 1.4 million tonnes of cement a year. The funds will bring total investment by Chinfon in the company to US$450 million, a company spokesman said. Chinfon Hai Phong Cement Co holds around 11 percent of Vietnam's cement market. Five foreign-invested cement projects have been licensed in Vietnam with a total investment of US$1.55 billion, according to the Vietnamese government.
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