Reserves reach record
Taiwan’s foreign-exchange reserves hit a record last month, largely due to a massive inflow of funds, the central bank said on Friday. An increase in returns on the central bank’s investment portfolio also drove up forex reserves last month, the bank said. Data compiled by the bank showed that forex reserves as of the end of last month stood at US$469.49 billion, up US$1.32 billion from August. It was the fourth consecutive month that Taiwan recorded a new high in reserves, the data showed.
HTC reports sales rise
HTC Corp (宏達電) on Thursday reported its first year-on-year increase in monthly sales in more than two years. HTC posted NT$1.275 billion (US$41.16 million) in consolidated sales last month, up 1.53 percent from a year earlier, it said in a statement. On a monthly basis, consolidated sales soared 73.7 percent, marking the second consecutive month of increases. Despite its efforts to develop virtual-reality headsets, strong competition in the global smartphone market squeezed HTC’s sales for the first nine months of this year, with cumulative revenue falling 58.17 percent from a year earlier to NT$8.2 billion.
ASE issues green bonds
ASE Technology Holding Co (ASE, 日月光投控), the world’s biggest chip packager and tester, on Thursday issued US$300 million of green bonds to offset its emissions. The company is the fourth to sell green bonds in Taiwan after Far Eastern New Century Corp (遠東新世紀), Evergreen Marine Corp (長榮海運) and Chi Mei Corp (奇美實業), but the first to issue foreign currency-denominated green bonds, the exchange said.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable