After securing approval from the Securities & Futures Commission, the local branch of Fidelity Investments (富達投資) -- one of the US' largest mutual fund managers, has decided to discontinue sales of its red-hot emerging market fund.
Beginning in January, Fidelity will stop selling its emerging market fund in Taiwan, as the offshore fund nears the government-imposed cap on Chinese equities investments.
Since 2004, Taiwan has restricted offshore mutual funds, which raise money in Taiwan for investments in overseas stock markets, on putting more than 0.4 percent of their net assets in Chinese shares, including both A shares and B shares.
The cap for investments in red chips and H shares on the Hong Kong stock market, imposed in early 2005, is set at 10 percent of net assets.
The size of Fidelity's emerging market fund -- one of the top-selling mutual funds in Taiwan -- reached US$2.159 billion in September with a return rate of more than 40 percent, local media reports said.
Fidelity's emerging market fund, which joined two other mutual funds -- Merrill Lynch's world mining fund and the Franklin Templeton Latin American Fund -- was named one the most popular funds last month by local investment Web site Fundwatch (
Fidelity may see a buying spree before January.
After January, existing fund buyers will be allowed to maintain their monthly investments with no option to increase their investment amount.
According to local media reports, the government's investment ceiling has forced several offshore funds to exit the local market.
Before Fidelity's emerging market fund, 23 overseas funds have stopped their local sales since Barings Asset Management Holding Ltd (
Fidelity Investments will also discontinue sales of its global growth funds and fixed income funds on Dec. 1 on the grounds that the trading value of both funds' investment in financial derivative products is approaching the government-imposed ceiling.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last