Text / Hong Lingxiang
According to the “Financial News” report, at 12:30 noon on September 1, Taiwan time, the Kinmen garrison shot down a Chinese drone that invaded the restricted waters of Shiyu Island for the first time; the US financial website Bloomberg did not take it lightly and immediately wrote an article. He pointed out that this is hard evidence of “escalating geopolitical risks” between Taiwan and China.
“Financial News” reported that since the start of the war between Russia and Ukraine, Taiwan has not only been accused of being the next hotspot for war, but also caused foreign capital to continue to withdraw from Taiwan’s capital market. From January to August this year, foreign investment in Taiwanese stocks exceeded one trillion Taiwan dollars. , the largest capital market in Asia.
“My friends from foreign brokerages, have a deep sense of powerlessness this year; no matter how good the physique and prospects are in Taiwan’s semiconductor, biotechnology, and finance, customers are asking you to withdraw from Greater China.” , in an interview with Caixun, he admitted that geopolitical risks in the Taiwan Strait have become a part of the fundamentals, and fund managers cannot decide to buy or sell, but raise the overall allocation decision to the long-term investment level. The number has continued to increase, but the number of institutional corporate persons commenting on Taiwan stocks has continued to decrease in recent years.
“If you are an investment director of a retirement fund in the United States or Europe, and you see news on Bloomberg and CNN that U.S., China and Taiwan military planes and warships have broken into each other’s territorial waters and airspace, not only will the money be withdrawn from China, but it will also be reduced. Code Taiwan.” He said.
“Financial News” reported that Li Hongji observed that foreign investors who preferred to invest in Taiwan stocks in the past usually came for cash yields of more than 4%. However, since the dollar has appreciated and the US has raised interest rates since the beginning of this year, the 10-year US bond yield is expected to return to 4%; and Taiwan stocks still have geopolitical risks, the incentives for high yields are negligible.
Therefore, according to the analysis of “Financial News”, companies must be more proactive in explaining their risk diversification plans to the outside world. In late September, the stock exchange and Quantum International will hold the 12th Taiwan CEO Week, and 61 Taiwanese companies will explain how to deal with the political deadlock in the Taiwan Strait. It is understood that the legal person of the institution will not ask nakedly: “What if there is a war in the Taiwan Strait?” but “I heard that your customer (brand owner) asks you to diversify risk, what is your strategy?” Or question, “Go to Southeast Asia. After moving, is there a next step?”
Li Hongji believes that different industries and companies have their own niche markets and political and economic considerations. As long as they can clearly explain to the outside world, it is the best time to show their corporate style. “Taiwan company stocks are of course the best listed in Taiwan, but business is Those with feet can move to the most favorable places, which is what Taiwanese businessmen have always been good at, and if they don’t think about these things, they won’t be like Taiwanese businessmen.”
Further reading:
Kill the plate and rush out!Taiwan stocks closed down 404 points, foreign sales exceeded NT$42 billion, and fell to a 19-month low intraday
Foreign investors sold over one trillion yuan in Taiwan stocks, because they were afraid of a war between the two sides of the strait. Xie Jinhe analyzed the signals revealed by the meeting with Xi Jinping
Beijing is talking about the normalization of military exercises!Taiwan Strait Dismantles the Falsity and Reality of the CCP’s Blockade and Intimidation