Taipei, May 22 (CNA) Profits earned by Taiwanese listed and over-the-counter (OTC) companies from their investments in China decreased to a combined NT$20.8 billion (US$705 million) in the first quarter of the year due to rising labor costs and the European debt crisis, according to a Financial Supervision Commission (FSC) report released Tuesday.
The gains dropped by NT$19.1 billion, or 47.87 percent, from the same quarter of last year, the report said.
According to statistics compiled by the government agency, as of the end of Q1, there were 1,049 Taiwan listed and OTC companies with China investments, accounting for 76.35 percent of all the listed and OTC companies in Taiwan.
In Q1, these Taiwanese investors channeled NT$20.3 billion into China to invest in their businesses, the statistics show. They also indicate that as of the end of Q1, the mainland investments of the listed and OTC companies had accumulated to NT$1.33 trillion.
The FSC report also pointed out that the investors remitted just NT$1.1 billion out of the NT$20.8 billion in profits from the mainland back to Taiwan in the first quarter.
(By Wu Ching-chun and Elizabeth Hsu)