TAIEX up on news China restrictions could be relaxed

Stocks rose yesterday, with the TAIEX climbing for a seventh week, the longest winning streak in two-and-a-half years, after a report said the government plans to ease restrictions on investing in China.

Companies with factories in China such as Hon Hai Precision Industry Co (鴻海精密) and Asustek Computer Inc (華碩電腦) gained.

"Easing restrictions on China investment will allow Taiwanese companies to ride on China's economic growth," said Liu Juming, a fund manager at Ta Chong Investment Trust Corp (大眾投信), which manages US$1.1 billion in assets.

AU Optronics Corp (友達光電) and Chi Mei Optoelectronics Corp (奇美電子) rose after a report said Dell Inc plans to raise the number of monitors it buys from Taiwan by 15 percent next year from this year.

The index rose 92.22, or 1.5 percent, to 6350.69. About three stocks gained for every one that declined. For the week, the index gained 1.4 percent.

Listed Taiwanese companies may be allowed to invest more than the current 40 percent of their net asset values if they meet requirements connected with capital repatriation, dividends and levels of foreign ownership, the Chinese-language Commercial Times reported, citing the nation's financial regulator.

Hon Hai, the nation's largest electronics company by sales, rose NT$4.50, or 2.6 percent, to NT$176. Asustek, the nation's largest maker of boards that connect the chips in personal computers, rose NT$1.90, or 2 percent, to NT$98.

On the stock exchange, NT$129.9 billion (US$3.9 billion) worth of shares changed hands.