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Taiwan more 'visible' with unchanged MSCI status: analyst

2012/06/21 22:00:37

Taipei, June 21 (CNA) Taiwan remained an emerging market in the latest assessment by MSCI Inc., a global index provider, but ananalyst said Thursday that was not necessarily a disadvantage as Taiwan remained "visible" to investors.

Taiwan's developing market status is not exactly negative, said Jenny Lai, head of research at HSBC Securities in Taiwan, who added that such a status means Taiwan's "visibility" remains high among global investors.

In a statement released on its website Wednesday, MSCI said the MSCI Taiwan Index will remain under review for a potential upgrade to a developed market status as part of the 2013 annual review.

The result was not surprising to local financial securities, she said, adding that the results of an upgrade would have been mixed.

The upside would be Taiwan could attract more funds because the fund size of developed markets is much larger than that of emerging markets, she said, noting that a small amount of funds from the global market would be large for Taiwan.

On the other hand, Taiwan would probably have to sacrifice the attention it has received as an emerging market, she added.

Taiwan, as well as South Korea, which also remained an emerging market, are "either No. 1 or No. 2" among developing markets because of their more stable and mature markets, compared with other emerging economies such as India, Lai continued.

If Taiwan becomes a developed market, its economic performance would not look as good as other countries, including the United States, she concluded.

(By Wu Chia-ying and Kendra Lin)