Morgan Stanley Capital Interna-tional Inc (MSCI) said it will give full weight to Taiwan's stocks in global indexes, and investors may buy about US$4 billion of the island's equities to track the benchmarks, analysts said. \nLocal companies, which make up the fifth-largest stock market in Asia by value, have 55 percent of their market value represented in the indexes. MSCI said it will increase that to 75 percent at the close of trading on Nov. 30, and to 100 percent next May 31. \nWith full inclusion, Taiwan would surpass South Korea as the largest market represented in the MSCI Emerging Markets Index, making up 20 percent, based on market values as of June 2. \nThe island would account for 27 percent of the MSCI All Country Asia-Pacific excluding Japan Index, exceeding both South Korea and Hong Kong, said MSCI in a statement on its Web site. \n"It's clearly very bullish for Taiwan, because of the huge amount of quasi index money that will have to go into that market," said Alexander Muromcew, who helps manage US$600 million in global equities as a fund manager for Loomis Sayles and Co in San Francisco. "Unfortunately, it means that money has to go out from some other markets and so, net-net, it's a negative particularly for markets in Hong Kong and South Korea." \nMuromcew said that Loomis Sayles may increase its investment in Taiwan stocks after the announcement. \nThe increase results from the scrapping last July of restrictions on the amount of stock that overseas investors can hold. In April, MSCI started a consultation on whether to grant Taiwan greater representation. \nTaiwan Semiconductor Manu-facturing Co and United Microelectronics Corp will attract most of the money that index-tracking funds may put into the country, said Alex Ypsilanti, Merrill Lynch and Co's Hong Kong-based head of Asia Pacific ex-Japan derivatives strategy. The chipmakers are two of the nation's largest companies by market value. \nGoldman Sachs Group Inc on June 7 recommended clients buy more of the island's equities and forecast that a weighting increase would help the benchmark TAIEX index rise as much as 30 percent in a year. \n"The move will mean more inflows into the Taiwanese market by foreign investors," said Francesco Rizzuto, a Milan-based fund manager at Nextra Investment Management SGR SpA, who helps manage 90 billion euros (US$109 billion) in assets.
SAFETY RISK: The government is working to categorize countries based on their COVID-19 cases and prevention efforts, which would determine quarantine periods The government plans to rank countries based on their COVID-19 risks to determine how to treat tourists and other travelers from those nations once Taiwan reopens its borders, but it is still working out the categories, a top health official told lawmakers yesterday. “We would divide countries around the world into several categories. One category would comprise those countries with very few confirmed COVID-19 cases, such as New Zealand and Palau. Travelers from the countries in this category would only need to practice self-health management,” Centers for Disease Control Deputy Director-General Chuang Jen-hsiang (莊人祥) told a Legislative Yuan seminar hosted by
China would attack Taiwan if there is no other way of stopping it from becoming independent, Chinese General Li Zuocheng (李作成) said yesterday. Speaking at Beijing’s Great Hall of the People on the 15th anniversary of China’s “Anti-Secession” Law, Li, who is chief of the Joint Staff Department of the Chinese People’s Liberation Army Central Military Commission, left the door open to using force. The 2005 law is China’s legislative basis for military action against Taiwan. “If the possibility for peaceful reunification is lost, the people’s armed forces will, with the whole nation, including the people of Taiwan, take all necessary steps to
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RELATIONSHIP ‘TERMINATED’: US Speaker Nancy Pelosi said that the president’s action was ‘an act of extraordinary senselessness,’ a tone Chinese media echoed US President Donald Trump on Friday announced that Washington would withdraw funding from the WHO, end Hong Kong’s special trade status and suspend visas of Chinese graduate students suspected of conducting research on behalf of their government. Trump said in a White House announcement that Chinese officials “ignored” their reporting obligations to the WHO and pressured the organization to mislead the public about the outbreak. “We have detailed the reforms that it must make and engaged with them directly, but they have refused to act,” he said. “Because they have failed to make the requested and greatly needed reforms, we will be