Chinese investment dives
Chinese investment in the country’s commercial property has plummeted to the lowest level in six years as Chinese capital controls bite. Direct investment fell 81 percent to A$250 million (US$187 million) in the first half of the year from a year earlier, property brokerage CBRE Group Inc said in a report yesterday. “If these restrictions continue, we expect Chinese investment into Australia to record its lowest year since 2012,” CBRE associate director of capital markets and forecasting Ben Martin-Henry said. The capital controls are having a “meaningful impact” globally, he said. Chinese spending on commercial property in the country is down from a A$2 billion high in 2015, when capital from Asia’s biggest economy accounted for 43 percent of all foreign investments, CBRE said.
FX holdings remain steady
The country’s foreign-currency (FX) holdings held steady last month, with a slight month-on-month increase, as the yuan slumped and the nation came closer to the trade war that has now begun with the US. Reserves last month rose US$1.51 billion to US$3.112 trillion, the People’s Bank of China said yesterday. That was more than the US$3.102 trillion estimate in Bloomberg’s survey of economists. The increase came as the yuan suffered its worst quarter since 1994, as China and the US neared the imposition of tariffs on at least US$34 billion of each other’s goods. Further declines in the yuan might stoke concern over capital flight, prompting the central bank to use reserves to defend the currency.
E-car infrastructure boosted
The country is to boost investment in electric-car infrastructure, including a ￡400 million (US$531 million) fund for companies that produce and install charging points. New street lighting also would be required to have charging points in areas with on-street parking and a ￡40 million program would be introduced to test low-cost wireless charging technology, among other measures unveiled yesterday by Transport Secretary Chris Grayling. The proposals are part of the government’s push to end the sale of new cars and vans fueled by gasoline and diesel by 2040. “The prize is not just a cleaner and healthier environment, but a UK economy fit for the future and the chance to win a substantial slice of a market estimated to be worth up to ￡7.6 trillion by 2050,” Grayling is to say in a speech to mark the government’s “Road to Zero” strategy.
Brexit hits financial services
The country’s financial services industry is battling a drop in foreign investment, while some of its EU counterparts enjoy big gains, according to a new study that displays the starkest indication yet of Brexit’s impact on the sector. Investment in the country’s financial services firms from abroad last year fell 26 percent, EY Financial Services said in a report yesterday. During the same period, Germany experienced a 64 percent increase, while the figure for France more than doubled. London remains the most attractive EU city for investment in financial services, but the gap with Paris, Frankfurt and Dublin is narrowing, EY said. With talks between the UK and EU stalled since March, banks are rushing to establish new trading hubs elsewhere in the region. EU regulators have made it clear that they expect banks to establish full-scale, standalone operations inside the union staffed by significant numbers of front and back-office staff, as well as senior employees, as soon as possible.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
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
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to