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View Full Version : Buying Shares in Taiwanese Companies.



BrewBoy78
16-09-2007, 05:28 PM
Hello Sharetrader Members,

I'm new to the forum and a novice investor.

I am a NZ'er living in Taiwan (married to a Taiwanese National) and I want to invest in some Taiwanese companies.

What is the best method of purching the stock?

Using my broker in NZ or investing directly here in Taiwan?

I would appreciate if more experienced investors can identify all the important points to consider.

My father in law here in Taiwan is basically a day trader, so he always has hot tips (yes - he does well) however his investments are more speculative where as I prefer a long term approach.

From my limited research the market in Taiwan seems to be quite speculative, with shares bought and sold depending on news/rumors of pending orders for contract manufacturers in the consumer electronics industry and the current political situation with Mainland China. In addition there are a lot of insider trading allegations in the media.

Any comments and suggestions are welcome and appreciated.

Cheers,
BrewBoy78.

seaosh
17-09-2007, 05:26 PM
Hi Brewboy, I used to be a stockbroker in Taiwan. My information may be out of date but probably it still applies.

You will definitely need an ARC to open a brokerage account. If you are married I guess that isn't an issue. You will probably also need a chop. I needed a chop when I opened mine, but signatures may be OK these days.

Any broker with offices in Taiwan should be able to help you open an account. As you no doubt know they are literally all over the place.

I wouldn't bother trying to do it through a New Zealand broker. Even if they could do it they'd surely charge you a fortune for it.

If all else fails just do it all in your wife's name.

If you want information in English then the English newspapers are a place to start. Bear in mind that their business news tends to have been in the previous day's chinese papers. Reading the news for a few months will give you an idea of the market though. Of course if you can read Chinese the Chinese papers have even more financial news. Financial news is very repetitive so it isn't as hard to read as you might think.

If you are in Taipei your best bet could be go prowling around bars where stock brokers hang out. The Brass Monkey on Fuxing Rd. (just north of Nanjing Rd) would be a likely place to go hunting. Just pounce on the loud guys wearing red braces and offer them beer. Somebody will probably be able to point you towards sources of English language research reports.

seaosh
17-09-2007, 06:46 PM
Come to think of it you would probably get more useful feedback if you asked your question in the business and money forum on www.forumosa.com.

http://forumosa.com/taiwan/viewforum.php?f=88&sid=419a6079be33fb0fa874ea109d1c6963

seaosh
17-09-2007, 06:52 PM
Just saw there is a post in that forum asking exactly your question.

Like one of the guys in that forum I got an account through my old employer and so didn't have to deal with the paperwork myself.

So now I'm thinking maybe an ARC isn't sufficient to trade stocks.

BrewBoy78
18-09-2007, 01:37 AM
Hello seaosh,

Thanks for your replies.

You have answered my question.

I have been having read through the forums you suggested.

How did you enjoy working as a stockbroker in Taiwan?

Cheers,
BrewBoy78.

seaosh
20-09-2007, 10:01 PM
How did you enjoy working as a stockbroker in Taiwan?

Well mostly I did it through a bear market, plus my company fired most of the research team planning to employ analysts who US degrees and English language skills, but then had difficulties finding qualified people, so it was kind of a frustrating job.