| KGI

Hong Kong, 11 December 2023 – Starting today, KGI Asia launches online Taiwan stock trading service. KGI Asia clients can buy and sell Taiwan stocks on the KGI Asia online trading platform, enjoying flexible and efficient securities trading services anytime, anywhere. In addition, KGI Asia also provides Taiwan market analysis and individual stock research reports to help investors seize cross-regional investment opportunities.

KGI Asia previously released its 2024 Global Market Outlook, which includes analysis of the Taiwan market. Summary:

Global manufacturing has, since Q4 2023, begun inventory de-stocking with signs of recovery in PCs and smartphones. A restocking cycle has begun, and these cycles typically last about one and a half to two years. In a soft-landing economic scenario, global manufacturing inventory restocking is expected to continue beyond 2024.

With technology giants continuing to build AI infrastructure and deploy AI applications, plus major smartphone and PC brands planning to integrate AI capabilities into terminal devices, a new round of device refresh cycles is expected to ignite in H2 2024 through 2025. Driven by cyclical (manufacturing inventory restocking) and structural (generative AI boosting AI applications) factors, the Taiwan stock market is forecast to reverse its 2023 downturn and record over 20% earnings growth in both 2024 and 2025.

James Chu, Chairman at KGI Securities Investment Advisory, says: “Next year the U.S. economy will continue to slow, primarily reflecting services weakness. Yet manufacturing, given its inventory adjustment lasting more than a year and a half, will enter a restocking cycle, which is favorable for a stock-market structure centered on manufacturing in Taiwan. The structural growth of AI will also be a powerful driver pushing Taiwan stock earnings growth to above 20% in the next two years. AI, initially applied mainly to cloud servers, is expected to see AI capabilities introduced into terminal devices by major smartphone and PC brands in the second half of next year, potentially triggering a new wave of smartphone and PC replacement cycles. Taiwan stocks, given their strategic position in the AI supply chain, will benefit noticeably.”

Note: Online trading system for buying and selling Taiwan stocks is available only to specific accounts; for details, please contact KGI Asia.

KGI Asia Launches Online Taiwan Stock Trading Service Helps Investors Capture Cross-Regional Investment Opportunities