Asia Pacific (APAC), Global Politics

Cross-Strait News Daily Round-Up for Nov. 25

Here’s a brief roundup of the top business stories in Taiwan, Hong Kong and China for Nov. 25, 2014.

Taiwan’s industrial output rises: MOEA

Taiwan’s Ministry of Economic Affairs (MOEA) said on Nov. 23 that the nation’s industrial production index rose to 112.56 in October, while Taiwanese electronics products have been demanded by global smartphone manufacturers.

Yang Kuei-hsien (楊貴顯), deputy director-general for Department of Statistics, said that the annual output expanded by 8.97 % in October, moderating from a 10.3 percent expansion in September. He said that growth in production is expected to be sustainable this quarter, compared with the same period last year, supported by increasing demand for wearable devices and the Internet of Things (IOT).

The director-general said that the manufacturing sub-index increased 9 percent year-on-year and 2.76% month-on-month during October, due to strong performances by the semiconductor, LED and optic modulator industries.

Yang said that industrial production rose 5.94% during the first 10 months of the year, to compare with the same figure for last year, while the manufacturing sub-sector increased 6.28% annually over the same period.

Shanghai stocks’ pre-rate-cut rally draws suspicions of insider trading

China Economic Review reported on Nov. 25 that an unusual rally among Shanghai-listed stocks just before the country’s central bank last Friday has prompted suspicions of insider trading among some investors.

Shanghai’s benchmark index started virtually flat on Friday (Nov. 21) but it began to climb 1.4% in the afternoon to just shy of its three-year high despite a lack of substantial market-moving news, while trading volume jumped 31% from the previous day.

Stocks in brokerages and property developers, which would be among the winners from eased monetary policy, were among the biggest movers Friday.

Tibetan hydropower project starts operating upstream on Brahmaputra

China Economic Review reported on Nov. 25 that the Zangmu Hydropower Station’s first generating plant began operations in Tibet on Sunday (Nov. 23).

Xinhua, China’s state-owned news agency, reported that the station’s dam, located on the Yarlung Zanbo River, or the Brahmaputra in India, is still under construction and will be 116 meters high with a generating capacity of 510,000 kilowatts when completed.

In response, India showed its concerns about damming the Brahmaputra, one of the largest Himalayan rivers and a lifeline to some of India’s remote, farm-dependent northeastern states.

Bank of China predicts more dim sum bonds to be issued in Australia next year

Bank of China said on Nov. 24 that Australian corporate borrowers will start issuing dim sum bonds by the middle of next year after the first offering from a state government.

Hu Shanjun (胡善君), Australia country head for Bank of China, said that last week’s sale by New South Wales, the country’s biggest regional economy, of 1 billion yuan (US$133 million) of securities opened the door for non-financial companies that do business with the mainland.

Bank of China managed the transaction with Australia and New Zealand Banking Group.

Hu said that Bank of China had spoken to potential issuers and the market might develop “very quickly,” possibly reaching “hundreds of billions” of yuan over the next few years.