The yuan posted a second weekly advance on speculation China’s leadership will support the yuan’s case for being named a global reserve currency and announce more stimulus to revive a slowing economy.
A preliminary manufacturing index (PMI) fell to the lowest in a year, according to data from HSBC Holdings PLC and Markit Economics on Thursday.
China is making the yuan more “freely usable” to be included in the IMF’s Special Drawing Rights (SDR) basket of reserve currencies, People’s Bank of China Governor Zhou Xiaochuan (周小川) said in Washington on Saturday last week.
The IMF’s board is scheduled to conduct a twice-a-decade review in October.
The yuan advanced 0.05 percent for the week and on Friday day to close at 6.1950 to the US dollar in Shanghai, China Foreign Exchange Trade System prices show. In Hong Kong, the currency was unchanged from Friday last week and rose 0.02 percent on Friday to 6.1946 as of 5:11pm, according to data compiled by Bloomberg.
The New Taiwan dollar rose to a five-month high as stock inflows reached the highest in seven years amid speculation about the creation of an equity link with China.
Global funds bought NT$46 billion (US$1.5 billion) more shares than they sold on Friday, preliminary exchange data show, as the TAIEX surged to a 15-year high.
China’s securities regulator is studying a trading link between the Shanghai and Taipei bourses, the Economic Daily News reported on Wednesday.
The NT dollar strengthened 0.3 percent on Friday and 0.4 percent this week to NT$31.051 against the greenback, Taipei Forex Inc prices show.
The won climbed 0.4 percent from Friday last week and 0.2 percent on Friday to 1,079.53 won a dollar as of the 3pm close in Seoul, data compiled by Bloomberg show.
The ringgit fell 0.3 percent to 3.6235 a dollar in Kuala Lumpur, according to data compiled by Bloomberg.
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
Swancor Renewable Energy Co (上緯新能源) yesterday announced plans for a 4.4 gigawatt (GW) offshore wind project off Miaoli County as part of its commitment toward Taiwan’s energy transformation, the company said in a statement. The “Formosa 4” project includes three deep-water wind farms 18km to 20km off the coast, Swancor Renewable CEO Lucas Lin (林雍堯) said, adding that planning for the project began last year. A proposal for Formosa 4 was this week submitted to the Environmental Protection Agency (EPA), the company said. Swancor Renewable jointly developed the Formosa 1 project, a 128 megawatt (MW) wind farm about 4km off Miaoli and the
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,