Chen tries to boost confidence among foreign investors

President Chen Shui-bian (陳水扁) yesterday met with top executives of 17 foreign investment banks and brokerages in Taipei, aiming to restore foreign investors' confidence in the local economy and the stock market.

"The president stressed the importance of better cross-strait relations, [economic and financial] reforms and [political] stability during his tenure in the next four years," John Crossman, regional head of ABN-AMRO Asset Management Taiwan Ltd, told reporters after the two-hour, closed-door meeting at the Presidential Office.

At the meeting, Chen vowed to accelerate the nation's reforms to beef up its international competitiveness, Crossman said. The president was also concerned about foreign investors' confidence in the local bourse, he added.

Crossman said there were many reasons foreign investors had pulled out of Asian shares recently, most of which were beyond Taiwan's control, such as concerns over interest-rate hikes in the US and China.

Foreign investors yesterday dumped NT$2.7 billion worth of Taiwanese shares, sending the TAIEX below the 6,000 points.

According to the Taiwan Stock Exchange, foreign investors were net sellers for 19 straight sessions from April 27 on concerns of a rise in US interest rates and rising oil prices. They unloaded US$3.8 billion in Taiwanese stocks during the period.

Hsieh Chin-ho (謝金河), publisher of the Chinese-language Win-Win Weekly and an organizer of the meeting, said the president stressed that the meeting "wasn't aimed at boosting tomorrow's stock performance, but to ensure foreign investors of his determination to turn around the local economy while fostering cross-strait trade relations."

"President Chen also clarified that he has never set a timetable for Taiwan independence," Hsieh said.

Satisfied with their first-ever meeting with the president, foreign bankers made a number of suggestions, including further relaxing restrictions on new financial products and opening new branches, Hsieh said.

Hsieh also confirmed that Du Ying-tzyong (杜英宗), chairman of Citigroup Global Markets Taiwan Ltd, presented a lengthy written proposal to the president, who, in return, promised to conduct a thorough study into it.

Du, however, wasn't available for comment as of press time yesterday.

Du had previously urged the government to speed up privatization of state-run banks via mergers and acquisitions while deregulating the flow of foreign capital.

Bankers at the meeting included Susan Lin (林水仙), chief executive officer of Morgan Stanley, Francis Yu (於貽勳), managing director of UBS Securities Ltd in Taiwan (瑞銀證券), Sung Hsueh (宋學仁), vice chairman of investment banking for Goldman Sachs Group Inc, and Carl Chien (錢國維), senior country officer for JPMorgan Chase Bank in Taiwan.