Thu, Nov 26, 2020 page11

• Taiwan Business Quick Take

  • Staff writer, with agencies
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  EQUITIES

  TAIEX encounters resistance

  The TAIEX yesterday closed lower, despite gains on Wall Street overnight, due to stiff technical resistance as the index closed in on 13,900 points. Selling focused on the bellwether electronics sector, which had driven the broader market sharply higher in recent sessions, while non-tech stocks ended mixed, dealers said. The TAIEX closed down 68.3 points, or 0.49 percent, at 13,738.83, on turnover of NT$263.612 billion (US$9.15 billion). Foreign institutional investors sold a net NT$10.63 billion of shares on the main board, Taiwan Stock Exchange data showed. “After the recent gains, valuations appeared high, especially in the bellwether electronics sector, leading many investors to protect against a major technical pullback by selling tech stocks,” Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺) said. “With the Thanksgiving and Christmas holidays approaching, I’m afraid that as more foreign institutional investors go on vacation, the market will see less liquidity.”

  FINANCE

  Chailease income jumps

  Chailease Holding Co Ltd (中租控股) yesterday reported consolidated net income of NT$1.52 billion for last month, up 13 percent year-on-year, or earnings per share of NT$1.1. In the first 10 months of this year, cumulative net income rose 8 percent annually to NT$13.9 billion, or earnings per share of NT$10.06, the company said. Chailease sales and earnings growth momentum in Taiwan, China and ASEAN has gradually recovered since the second quarter, after the COVID-19 pandemic affected its loan operations and accounts receivable business in the first quarter, it said. Chailease focuses on asset-based financing to small and medium-sized enterprises and retail customers. During the 10-month period, its Taiwanese operations reported the largest earnings growth, 20 percent from a year earlier, while earnings increased 16 percent at its ASEAN operations and 11 percent at its Chinese operations, it said.

  EQUITIES

  HK-China market link widens

  Hong Kong is to expand the scope of its trading link with bourses in China, a move that would give local and international investors access to a wider range of securities. Chinese investors could buy biotechnology companies listed in Hong Kong for the first time, while overseas investors could hold stocks traded on Shanghai’s Star market under the expanded program, Hong Kong Chief Executive Carrie Lam (林鄭月娥) said in her policy address yesterday. Still, companies with secondary listings and weighted voting rights, such as Alibaba Group Holding Ltd (阿里巴巴), would be excluded. “The central government supports further deepening the mutual access between the mainland and Hong Kong financial markets, and the gradual expansion of the scope of eligible securities under the mutual market access programs,” Lam said.

  CHINA

  PBOC hikes HK dollar swap

  The central bank yesterday said that it has renewed a bilateral currency swap facility with Hong Kong and expanded the size to 500 billion yuan (US$76.03 billion) from 400 billion yuan. The agreement was signed by the People’s Bank of China (PBOC) and the Hong Kong Monetary Authority. The renewal period would be five years, a statement posted on the PBOC Web site said. The renewal would help maintain financial stability, facilitate trade and investment, and promote the development of Hong Kong’s offshore yuan market, the PBOC said.
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