The opening of the Shanghai World Expo 2010 is expected to lift Taiwanese retail and food shares with ties to Chinese markets, but a recent sharp rise in those stocks could induce profit-taking pressure in the near term, analysts said on Saturday.
Although the largest-ever World Expo is expected to attract more than 70 million people before it closes on Oct. 31, increasing domestic demand in China has already boosted some of the shares on Taiwan’s stock market, they said.
Wu Wun-tong (吳文同), chief investment officer of Capital Investment Trust Corp (群益投信), said food and retail shares could continue to rise because Chinese domestic markets are expected to grow in the long term.
Wu said, however, that as some of the shares rose substantially before the opening of the expo, they are likely to enter a correction phase in the short term.
Taiwan’s Ruentex Industries Ltd (潤泰) and Ruentex Development Co (潤泰創新國際) — each of which holds more than 10 percent of shares in RT Mart China, a leading foreign hypermarket operator in China — retreated sharply on Friday because of profit-taking.
Shin Kong Investment Trust Co (新光投信) fund manager Lee Jui-heng (李瑞恒) said Taiwanese airlines, travel shares and shares closely connected to Chinese domestic markets would benefit the most from the expo.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices. However, while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs. Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump. They say this Chinese decision, of which Agence
RSS