Chinese Investments in Taiwan Skyrocket by 1,826% to US$96.5M. in January

Taipei, Feb. 22, 2012 (CENS)--Taiwan's inbound investments from Chinese enterprises skyrocketed by 1,825.9% from a year earlier to US$96.507 million in January, due mainly to the combined inward remittance of US$91.48 million by China's two state-run banks—Bank of China and Bank of Communications, which have recently been approved to establish branches in Taiwan.

As a result, the investments from China have accumulated to a total of US$272.07 million since July 2009, when the government here started to allow Chinese investments in Taiwan.

So far the banking industry has taken the largest share of mainland Chinese investments in Taiwan by value. Computer, electronics and optical sectors came second with US$56.383 million, and wholesale and retailing sector ranked third with US$47.551 million.

By contrast, Taiwan's investments in China came to US$779.75 million in January for a slight annual growth of 3%, with some US$275 million of which funneled into the real estate industry for an annual growth of 358.33%, the highest increase among Taiwan's China-bound investment sectors.

Shining Group and Cathay Construction Co., Taiwan's two leading construction firms, were among the China-bound construction investors in the month. The Shining Group former applied for issuing overseas convertible corporate bonds valued at US$95 million in January for establishing property firms in Chengdu of Sichuan Province and Shenyang of Liaoning Province. Cathay Construction remitted out US$80 million to China for setting up a property firm in Shanghai to run property trading and leasing businesses in China.

The electronics parts and components industry launched investments of US$138 million in China in January, which was the second highest dollar figure among Taiwan's China-bound investment although showing a sharp annual drop of 27.79%. The computer, electronic products and optical sectors made the third highest investment of US$106 million in China for a sizable annual growth of 45.44%.

In the same month Taiwan's outbound investments totaled US$504.68 million, shooting up 219.01% from a year earlier.