Taiwan’s International Investment Position, 2005
PRESS RELEASE Release Date: June 30, 2006
Taiwan’s International Investment Position, 2005
Taiwan has historically run a current account surplus. As a result, Taiwan's international investment continued to register a net asset position of US$ 380.05 billion at yearend 2005. Direct investment, portfolio investment, and other investment all recorded net asset positions.
In regard to external assets, the Bank's reserve assets of US$ 257.95 billion commanded the largest share, accounting for 40% of the total value at yearend 2005. Second to it was portfolio investment, which grew by 23% over yearend 2004 to US$ 154.26 billion. Portfolio investment abroad continued to reach record highs as a result of the increased foreign portfolio holdings by local insurance companies with an aim to pursue higher returns. Residents’ investment in foreign securities also increased through the purchase of mutual funds. Other investment grew by 8% to US$ 121.43 billion at yearend 2005 due to increases in foreign deposits of the private sector and in foreign loans of the banking sector. Direct investment abroad also reached US$ 106.51 billion at yearend 2005 due to the need of domestic enterprises to lower operation cost, enhance competitiveness, and adopt global logistic strategies. Financial derivatives investment recorded US$ 3.21 billion at yearend 2005.
In regard to external liabilities, portfolio investment by non-residents increased by 43% to US$ 133.63 billion at yearend 2005. It took 51%, the lion’s share, of total external liabilities. The increase was mainly due to inflows of foreign equity investment and rising local share prices. Other investment accounted for 32% of total external liabilities and recorded US$ 83.3 billion at yearend 2005. This was mainly because the Bank increased repurchase agreement transactions to earn higher returns. Direct investment accounted for 16% of total external liabilities and increased by 8% to US$ 42.96 billion at yearend 2005. Financial derivatives recorded US$3.42 billion.
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Notes: 1. The next international investment position data will be released at 16:20 on June 30, 2007.
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