China to rein in yuan: ANZ
China’s central bank is likely to push the yuan weaker in the near term to protect its trade position against the depreciating yen, Australia and New Zealand Banking Group Ltd (ANZ) said.
The yuan has appreciated nearly 8 percent against the yen since Japan launched its quantitative easing measures on April 3.
Liu Li-gang (劉利剛), ANZ’s chief economist in Greater China, said that based on a study by the bank, China’s global exports fall about 0.17 percent for every 1 percent depreciation in the yen against the yuan.
If the yen were to weaken to ￥110 against the US dollar, China’s global exports would likely decline by as much as 8 percent, he said.
“We believe China’s central bank will likely encourage yuan volatility to deter capital inflows. In addition, if China was to truly follow a basket of currencies to determine the exchange rate, the yuan could be pushed to the weak side in the near term,” Liu said.
Biotech sector to expand: MOEA
The nation’s biotechnology will continue to expand, in terms of both investment and business turnover, as the global market grows, the Ministry of Economic Affairs (MOEA) said on Saturday.
Investment in the biotechnology sector rose 18.66 percent year-on-year last year to NT$39.53 billion (US$1.34 billion), and sales rose 6.1 percent to NT$255 billion, the ministry said.
The upward trend will continue, the ministry said, in line with a forecast by Datamonitor that the global biotechnology market will continue to expand at a significant pace.
The forecast expected the global biotechnology market’s turnover to reach US$288.2 billion this year, up 10 percent from the previous year.
Next year, the global market will likely grow another 10.5 percent, according to the projection.
Taipei Harbor to launch ferry
Following in the footsteps of Keelung and Greater Taichung, Taipei Harbor will launch direct passenger service between Taiwan and China on May 13, Taiwan International Ports Corp (TIPC, 臺灣港務公司) said on Saturday.
The company said a passenger-cargo dual-use ship operated by Taiwan-based Wagon Shipping Co (華岡) will sail from Taipei to Pingtan in Fujian Province and back once a day, five days a week.
The ship will have capacity for 800 passengers, and the trip will take two hours and 45 minutes each way, the company said.
The service will be the latest addition to a growing lineup of cruise ferry services being offered across the Taiwan Strait, TIPC said.
Taipower to penalize employee
Taiwan Power Co (Taipower, 台電) yesterday said it would penalize an employee who was found to have joined the company’s component suppliers at “inappropriate places” to negotiate business deals.
The state-run utility’s action came after local media reported Taiwan Power Research Institute electronics specialist Chen Chun-hsiung (陳俊雄) lowered transformer standards for component suppliers after negotiating deals at bars.
Taipower said it had begun a probe over the scandal and will mark Chen an demerit as an administrative sanction.
Fongshan remains hot market
Fongshan (鳳山) remained the favorite location of property buyers in the Greater Kaohsiung area last month, leading the municipality’s 38 administrative districts in real-estate transactions, according to government statistics released on Saturday.
A total of 586 residential and commercial units were sold in Fongshan last month, up 86 percent from February, Sinyi Realty Inc (信義房屋) said, citing the statistics.