■ China trade rose in 2004
Total trade between Taiwan and China last year rose 33.1 percent to US$61.64 billion on the back of China's rapid economic expansion, the Bureau of Foreign Trade said yesterday. China accounted for 18 percent of Taiwan's total trade last year, compared with 17.1 percent a year earlier, the bureau said. "Despite China's implementation of controls [to slow the economy] its exports continued to grow, prompting strong demand for Taiwan-made items such as machinery and component parts," the board said in a statement. Last year Taiwan enjoyed a surplus of US$28.28 billion, up 15.9 percent, on its trade with China, its largest export market. Exports to China rose 27.2 percent to US$44.96 billion, accounting for 25.8 percent of total exports last year, compared with 24.5 percent in 2003. Imports from China grew 52.2 percent to US$16.68 billion.
■ Hon Hai inks HP deal
Hon Hai Precision Industry Co (鴻海精密), the nation's largest electronics company, said it has signed a contract with Hewlett-Packard Co (HP). The contract will strengthen Hon Hai's relations with HP and may be the start of joint development projects by the two companies, Hon Hai Precision said yesterday in a statement to the Taiwan Stock Exchange. Hon Hai didn't provide details on the contract. HP is the world's second-largest maker of PCs.
■ Morgan Stanley lowers rating
Morgan Stanley lowered its rating on Taiwanese financial stocks to "in-line" from "attractive," saying bad-loan write offs will limit earnings growth next year. Morgan Stanley analyst Lily Choi lowered Fubon Financial Holding Co (富邦金控) and E.Sun Financial Holding Co's (玉山金控) rating to "equal-weight" from "overweight" and SinoPac Holdings Co (建華金控) to "underweight" from "overweight," the brokerage said in a report dated yesterday. An index tracking financial stocks fell 2.2 percent this year, lagging the TAIEX's 1.4 percent gain. Fees generated from wealth management services are likely to slow amid rising interest rates and uncertainty about the stock market's performance, the report said.
■ Bank employees buy stock
Taiwan Cooperative Bank (合作金庫) employees applied to buy a 12 percent stake in the lender offered by the government, lowering the state's holding to below 50 percent, the nation's threshold for a bank to qualify as privatized. Bank workers applied for slightly more than the 304.8 million shares offered in the government sale, which gives employees priority before stock is sold to the public, the lender said in a statement. The stake is valued at NT$8 billion (US$258 million) based on Taiwan Cooperative's closing share price of NT$26.10 on Tuesday. The government plans to reduce its 60 percent stake in the bank in a drive to reduce the budget deficit and cut record national debt.
■ Japanese index asks Taiwanese
The Tokyo Stock Exchange Mothers Index has asked several Taiwanese companies, including Hon Hai, Acer Inc and Asustek Computer Inc (華碩電腦), to join, a Chinese-language business daily reported, citing index officials. Smaller companies with potential for growth are welcome, the newspaper reported, citing Tokyo Stock Exchange adviser Kurita Shinmei. Taiwan's plan for an index that would list overseas companies may be ready by mid-year, adding to competition among financial markets, the newspaper reported, citing unidentified officials from the Financial Supervisory Commission.
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