Net fi­nan­cial out­flows reg­is­tered for twen­ti­eth con­sec­u­tive quar­ter

The China Post - - LOCAL -

Tai­wan reg­is­tered a net out­flow in its fi­nan­cial ac­count for the 20th con­sec­u­tive quar­ter in the sec­ond quar­ter, rais­ing con­cerns of a fur­ther ex­o­dus of funds at a time when the do­mes­tic econ­omy has been slow­ing down.

Ac­cord­ing to sta­tis­tics com­piled by the cen­tral bank, Tai­wan’s fi­nan­cial ac­count, which mea­sures the flow of di­rect in­vest­ment and port­fo­lio in­vest­ments, showed a net out­flow of US$15.3 bil­lion in the sec­ond quar­ter.

It was the 20th con­sec­u­tive quar­ter in which a net out­flow was recorded, the long­est streak in Tai­wan’s history. Over that pe­riod. Tai­wan’s to­tal net out­flow was US$204.71 bil­lion.

In the sec­ond quar­ter, Tai­wan had a net out­flow of di­rect in­vest­ment and se­cu­ri­ties in­vest­ments in Tai­wan to­tal­ing US$4.24 bil­lion and US$10.40 bil­lion, re­spec­tively, the data showed.

Res­i­dents’ port­fo­lio in­vest­ments abroad reg­is­tered a net out­flow of US$13.52 bil­lion, mainly be­cause of Tai­wanese in­sur­ance com­pa­nies in­creas­ing their hold­ings of debt se­cu­ri­ties over­seas.

Non- res­i­dents’ se­cu­ri­ties in­vest­ment saw a net in­flow of US$3.13 bil­lion dur­ing the quar­ter as for­eign in­sti­tu­tional in­vestors boosted their hold­ings in lo­cal shares, the fig­ures showed.

Dis­miss­ing con­cerns over a fur­ther net in­vest­ment out­flow, the cen­tral bank said that it is not un­usual for coun­tries like Tai­wan that gen­er­ally record a sur­plus in their cur­rent ac­counts to register a net out­flow in their fi­nan­cial ac­count.

The cur­rent ac­count mainly mea­sures a coun­try’s mer­chan­dise and ser­vice ex­ports.

The cen­tral bank said the Nether­lands, Ja­pan and Ger­many, which all con­sis­tently run cur­rent ac­count sur­pluses, have recorded net out­flows in their fi­nan­cial ac­count for 36, 27 and 26 con­sec­u­tive quar­ters, re­spec­tively.

Tai­wan recorded a US$16.55 bil­lion cur­rent ac­count sur­plus in the sec­ond quar­ter that in­cluded a US$13.03 bil­lion mer­chan­dise trade sur­plus and a US$1.97 bil­lion sur­plus in trade in ser­vices such as tourism, the cen­tral bank said.

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