Listed, OTC companies post record net increase in Q1-Q3 overseas investment

Taipei, Dec. 11 (CNA) Overseas investments by companies listed on the Taiwan Stock Exchange and the over-the-counter (OTC) market marked a net increase of NT$919.2 billion (US$28.22 billion) in the first nine months, a record for that period in any year, the Financial Supervisory Commission (FSC) said Wednesday.

According to FSC statistics, overseas investments by listed and OTC companies totaled NT$9.54 trillion at the end of September.

FSC Vice Chairman Howard Huang (黃厚銘) attributed the growth to the increasing capital needs of companies, mainly in the semiconductor sector, for acquisitions or business expansion overseas.

Listed and OTC companies earned NT$758.5 billion in profits from overseas investment in the first three quarters, the third-highest level for that period of any year, according to FSC figures.

Huang attributed this to strong end-market demand and growth in the shipping, semiconductor and electronic components industries.

In contrast, Taiwan's listed and OTC companies have noticeably decreased investments in China since the United States launched a trade war against the country in 2018, Huang said.

Investment in China by those companies had reached NT$2.77 trillion by the end of September, an increase of NT$42.1 billion since the end of 2023. This marked the smallest increase for the period in the past three years, the data showed.

Over the first nine months, the companies chalked up an aggregate profit of NT$341.1 billion from investment in China, the third-highest level for the same period in any year.

During that period, 1,205 listed and OTC companies (69.01 percent) invested in China, compared with 1,316 companies (75.37 percent) investing in other countries, according to the data.