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.
DISCLAIMER
All the information contained in this document is not intended for use by persons or entities located in or residing in jurisdictions which restrict the distribution of this document by KGI Asia Limited (“KGI”), or any other affiliates of KGI. Such information shall not constitute investment advice, or an offer to sell, or an invitation, solicitation or recommendation to subscribe for or invest in any securities, insurance or other investment products or services nor a distribution of information for any such purpose in any jurisdiction. In particular, the information herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States of America, or to or for the benefit of United States persons (being residents of the United States of America or partnerships or corporations organised under the laws of the United States of America or any state, territory or possession thereof). All the information contained in this document is for general information and reference purpose only without taking into account of any particular investor’s objectives, financial situation or needs and may not be redistributed, reproduced or published (in whole or in part) by any means or for any purpose without the prior written consent of KGI. Such information is not intended to provide any legal, financial, tax or other professional advice and should not be relied upon in that regard.
All investments involve risks. The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities.
Bond investment is NOT equivalent to a time deposit. It is NOT protected under the Hong Kong Deposit Protection Scheme. Bondholders are exposed to a variety of risks, including but not limited to: (i) Credit risk - The issuer is responsible for payment of interest and repayment of principal of bonds. If the issuer defaults, the holder of bonds may not be able to receive interest and get back the principal. It should also be noted that credit ratings assigned by credit rating agencies do not guarantee the creditworthiness of the issuer; (ii) Liquidity risk - some bonds may not have active secondary markets and it would be difficult or impossible for investors to sell the bond before its maturity; (iii) Interest rate risk – When the interest rate rises, the price of a fixed rate bond will normally drop, and vice versa. If you want to sell your bond before it matures, you may get less than your purchase price. Do not invest in bond unless you fully understand and are willing to assume the risks associated with it. Please seek independent advice if you are unsure.
You are advised to exercise caution and undertake your own independent review, and you should seek independent professional advice before making any investment decision. You should carefully consider whether investment is suitable in light of your own risk tolerance, financial situation, investment experience, investment objectives, investment horizon and investment knowledge.
No representation or warranty is given, whether express or implied, on the accuracy, adequacy or completeness of information provided herein. In all cases, anyone proposing to rely on or use the information contained herein should independently verify and check the accuracy, completeness, reliability and suitability of the information. Simulations, past and projected performance may not necessarily be indicative of future results.
Information including the figures stated herein may not necessarily have been independently verified, and such information should not be relied upon in making investment decisions. None of KGI, its affiliates or their respective directors, officers, employees and representatives will be liable for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind) suffered or incurred by any person or entity due to any omission, error, inaccuracy, incompleteness or otherwise, or any reliance on such information. Furthermore, none of KGI, its affiliates or their respective directors, officers, employees and representatives shall be liable for the content of information provided by or quoted from third parties.
Members of the KGI group and their affiliates may provide services to any companies and affiliates of such companies mentioned herein. Members of the KGI group, their affiliates and their directors, officers, employees and representatives may from time to time have a position in any securities mentioned herein.
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.
DISCLAIMER
All the information contained in this document is not intended for use by persons or entities located in or residing in jurisdictions which restrict the distribution of this document by KGI Asia Limited (“KGI”), or any other affiliates of KGI. Such information shall not constitute investment advice, or an offer to sell, or an invitation, solicitation or recommendation to subscribe for or invest in any securities, insurance or other investment products or services nor a distribution of information for any such purpose in any jurisdiction. In particular, the information herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States of America, or to or for the benefit of United States persons (being residents of the United States of America or partnerships or corporations organised under the laws of the United States of America or any state, territory or possession thereof). All the information contained in this document is for general information and reference purpose only without taking into account of any particular investor’s objectives, financial situation or needs and may not be redistributed, reproduced or published (in whole or in part) by any means or for any purpose without the prior written consent of KGI. Such information is not intended to provide any legal, financial, tax or other professional advice and should not be relied upon in that regard.
All investments involve risks. The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that losses will be incurred rather than profit made as a result of buying and selling securities.
Bond investment is NOT equivalent to a time deposit. It is NOT protected under the Hong Kong Deposit Protection Scheme. Bondholders are exposed to a variety of risks, including but not limited to: (i) Credit risk - The issuer is responsible for payment of interest and repayment of principal of bonds. If the issuer defaults, the holder of bonds may not be able to receive interest and get back the principal. It should also be noted that credit ratings assigned by credit rating agencies do not guarantee the creditworthiness of the issuer; (ii) Liquidity risk - some bonds may not have active secondary markets and it would be difficult or impossible for investors to sell the bond before its maturity; (iii) Interest rate risk – When the interest rate rises, the price of a fixed rate bond will normally drop, and vice versa. If you want to sell your bond before it matures, you may get less than your purchase price. Do not invest in bond unless you fully understand and are willing to assume the risks associated with it. Please seek independent advice if you are unsure.
You are advised to exercise caution and undertake your own independent review, and you should seek independent professional advice before making any investment decision. You should carefully consider whether investment is suitable in light of your own risk tolerance, financial situation, investment experience, investment objectives, investment horizon and investment knowledge.
No representation or warranty is given, whether express or implied, on the accuracy, adequacy or completeness of information provided herein. In all cases, anyone proposing to rely on or use the information contained herein should independently verify and check the accuracy, completeness, reliability and suitability of the information. Simulations, past and projected performance may not necessarily be indicative of future results.
Information including the figures stated herein may not necessarily have been independently verified, and such information should not be relied upon in making investment decisions. None of KGI, its affiliates or their respective directors, officers, employees and representatives will be liable for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind) suffered or incurred by any person or entity due to any omission, error, inaccuracy, incompleteness or otherwise, or any reliance on such information. Furthermore, none of KGI, its affiliates or their respective directors, officers, employees and representatives shall be liable for the content of information provided by or quoted from third parties.
Members of the KGI group and their affiliates may provide services to any companies and affiliates of such companies mentioned herein. Members of the KGI group, their affiliates and their directors, officers, employees and representatives may from time to time have a position in any securities mentioned herein.