Taiwan's International Investment Position, 2004
PRESS RELEASE Release Date: July 1, 2005
Taiwan's International Investment Position, 2004
Taiwan has historically run a surplus on its current account. As a result, Taiwan's international investment continued to register net asset position of US$ 387.17 billion at yearend 2004. Direct investment, portfolio investment, financial derivatives, and other investment all recorded net asset positions.
In regard to external assets, the Bank's reserve assets of US$ 246.56 billion commanded the largest share, accounting for 41% of the total value at yearend 2004. Second to it was portfolio investment, which grew by 26% over yearend 2003 to US$ 145.67 billion. Portfolio investment abroad by residents continued to reach record highs as a result of increased exposures to global investment products as well as foreign equity holdings through the purchases of overseas mutual funds. Insurance companies also expanded their investment in foreign equities with the aim to raise earnings. Other investment grew by 13% to US$ 113.43 billion at yearend 2004 due to the increase of foreign deposits of the banking and private sectors. Direct investment abroad also reached US$ 91.27 billion at yearend 2004 due to the need of domestic enterprises to lower operation cost, enhance competitiveness, and adopt global logistic strategies. Financial derivatives investment merely recorded US$ 1.23 billion at yearend 2004.
In regard to external liabilities, portfolio investment by non-residents increased by 14% to US$ 94.76 billion at yearend 2004. It also took the lion’s share of total external liabilities, accounting for 45% of total external liabilities. The increase was mainly due to inflows of foreign equity investment and new issues of overseas corporate bonds by local enterprises. Other investment, which was mainly foreign claims on the banking sector, accounted for 36% of total external liabilities and recorded US$ 75.56 billion at yearend 2004. Direct investment accounted for 19% of total external liabilities and increased by 12% to US$ 40.3 billion at yearend 2004. The increase in direct investment was attributed to the new categorization methods that classified shares owned by a single non-resident of 10% or more of one company’s total shares as direct investment, in line with international statistics standard. Financial derivatives merely recorded US$0.36 billion.
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Notes: 1. The next international investment position data will be released at 16:20 on June 30, 2006.
2. For the release schedule for the next six months, please check the CBC website at http://www.cbc.gov.tw/EngHome/ESDDS/calacal.asp