Combined returns on investments in overseas markets except for China reported by the nation’s publicly listed companies plunged 15 percent year-on-year to NT$340 billion (US$11.15 billion) in the third quarter due to weaker business in some industries, the Financial Supervisory Commission (FSC) said yesterday.
“The electronic components industry reported falling profit due to weaker demand in China, the paper industry saw profit retreat on lower demand for paper products and the steel industry was hit with sluggish profitability due to increasing iron ore prices,” Securities and Futures Bureau Deputy Director Sam Chang (張振山) told a news conference in New Taipei City.
Some semiconductor companies listed on the Taipei Exchange (TPEX) also reported lower profit from a year earlier, due to fewer orders amid higher economic uncertainty worldwide, Chang said.
Despite an annual decline of 15 percent, NT$340 billion is still the second-highest foreign returns in a decade, Chang said.
That might explain why listed companies continued to increase their investments in overseas markets last quarter, with combined new investment totaling NT$30.3 billion over the period, he said.
The reasons behind most companies’ increased foreign investment included expanding their operations, adding new capital to their overseas subsidiaries and preparing to acquire other companies, the commission said.
Cumulative overseas investment stood at NT$6.68 trillion as of the end of September, conducted by 1,275 listed companies, or 79.64 percent of all 1,601 firms listed on the Tawian Stock Exchange and the TPEX, data showed.
Listed companies’ combined returns on investment in China dropped 1 percent year-on-year to NT$213.3 billion during the third quarter, with mixed results for companies listed on the two exchanges, data showed.
Electronics companies listed on the Taiwan Stock Exchange posted lower profits due to weaker demand for some communications products, while optoelectronics firms listed on the TPEX posted higher profits thanks to cost-cutting, Chang said.
New investment in China last quarter was NT$5.8 billion, mainly conducted by the computer and electronic components industries, he said.
Seventy-five percent of all companies listed on the Taiwan Stock Exchange and the TPEX — 1,201 listed companies — invested in China, an increase of one company from the end of last year, the commission said.
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