Latest news with #Kunshan
Japan Times
5 hours ago
- Business
- Japan Times
Taiwan's entrepreneurs in China feel heat from cross-strait tensions
Bustling Taipei-style shopping streets, majestic temples to the island's deities and thriving factories dot the eastern Chinese city of Kunshan, for years a hub for Taiwanese businesses. But now those firms are feeling the strain from cross-strait tensions that have stoked safety fears among them. Taiwanese entrepreneurs — known as Taishang in Mandarin — poured billions into mainland China since ties began improving in the 1990s, playing an important role in its rise to become the world's second-largest economy. But their numbers have dwindled in recent years, with the number of Taiwanese working in China dropping from 409,000 in 2009 to 177,000 in 2022, according to estimates provided by the Straits Exchange Foundation, an unofficial intermediary between Taipei and Beijing. China's economic slowdown and mounting trade tensions with Washington are partially responsible for the drop, the organization says. But James Lee, a 78-year-old Taiwanese industrialist who was forced to close his cable and electrical outlet factory in southern Guangdong province in 2022, blames "politics." "You have to be very careful when you speak," Lee said. "We Taiwanese businessmen are afraid." Bolstered by their mastery of Mandarin and business acumen, Taishang have prospered as wily intermediaries between international markets and China's vast industrial manufacturing base. Perhaps the most famous of them is Terry Gou, the founder of Foxconn whose vast factories in China churn out iPhones that have helped make it the world's biggest contract electronics manufacturer. No guarantee of safety An hour's drive from economic powerhouse Shanghai, Kunshan has been a key hub for Taiwanese-owned industry in China since the 1990s. "Back then, it was a rice field," recalls Annie Wang, an industrialist from the island who arrived in Kunshan in 1996. "Taiwanese companies were fortunate to coincide with the 30 most glorious years of Chinese manufacturing," she said. Now, Wang heads an electronics subcontracting manufacturing plant, a small technology park and a coffee utensil brand. At the height of the boom, Kunshan was home to more than 100,000 Taiwanese, according to unofficial figures from local associations. But the number of Taiwanese companies in the city has shrunk from more than 10,000 a decade ago to fewer than 5,000 today, according to the data. And the Taishang have felt the squeeze as relations between Taipei and Beijing plunge to their lowest depths in years. The Chinese Communist Party — which claims Taiwan as its territory but has never controlled it — has hardened its stance against alleged "Taiwanese independence activists," even calling for the death penalty for alleged secessionism. New rules, which also encourage citizens to report alleged pro-independence activities, have had a chilling effect on Taiwanese businesses in mainland China. "We are not sending Taiwanese employees (to China) because we don't know how to guarantee their safety," said Lee. "The initial favourable conditions have disappeared, and now there are many additional risks," Luo Wen-jia, vice chairman of the Straits Exchange Foundation, said. China's economic woes and rising production costs are adding to the problems. "When we first went there, we thought that China's economy would continue to improve because its market is so large and its population is so big," Leon Chen, a Taiwanese businessman who worked at a battery component factory in the southeastern province of Jiangxi, said. "But we haven't seen this materialise because there are some issues — there is the U.S.-China trade war and there was the pandemic," he added. Caught in crossfire In response, Taiwanese manufacturers are turning to new, more profitable — and less politically sensitive — locales. "Some went to Vietnam, and some went to Thailand, Indonesia and the Philippines, and some returned to Taiwan," Luo said. Between 2016 and 2024, Taiwanese investments in Vietnam approved by the Ministry of Economic Affairs in Taipei soared 129%, from $451 million to more than $1 billion. Over the same period, those to mainland China fell 62%, according to the same source. This decline could deal a blow to Beijing's "united front" strategy, which has seen it lean on Taishang communities to promote Taiwan's political integration and, ultimately, unification. And as Beijing launches military drills practicing a blockade of Taiwan and Taipei cracks down on Chinese spies, Taishang risk being caught in the crossfire. In October 2023, Foxconn was placed under investigation by Chinese authorities — a move widely seen as linked to a bid for the Taiwan presidency by its founder. "There is no way to compare it with the heyday but we can still make ends meet," said Chen. "If the environment for doing business in China becomes worse and worse, we would have no choice but to leave."
Yahoo
7 hours ago
- Business
- Yahoo
Taiwan's entrepreneurs in China feel heat from cross-Strait tensions
Bustling Taipei-style shopping streets, majestic temples to the island's deities and thriving factories dot the eastern Chinese city of Kunshan, for years a hub for Taiwanese businesses. But now those firms are feeling the strain from cross-Strait tensions that have stoked safety fears among companies. Taiwanese entrepreneurs -- known as "Taishang" in Mandarin -- poured billions into mainland China since ties began improving in the 1990s, playing an important role in its rise to become the world's second-largest economy. But their numbers have dwindled in recent years, with the number of Taiwanese working in China dropping from 409,000 in 2009 to 177,000 in 2022, according to estimates provided to AFP by the Straits Exchange Foundation, an unofficial intermediary between Taipei and Beijing. China's economic slowdown and mounting trade tensions with Washington are partially responsible, the organisation says. But James Lee, a 78-year-old Taiwanese industrialist who was forced to close his cable and electrical outlet factory in southern Guangdong province in 2022, blames "politics". "You have to be very careful when you speak," Lee told AFP. "We Taiwanese businessmen are afraid." Bolstered by their mastery of Mandarin and business acumen, Taishang have prospered as wily intermediaries between international markets and China's vast industrial manufacturing base. Perhaps the most famous of them is Terry Gou, the founder of Foxconn whose vast factories in China churn out iPhones that have helped make it the world's biggest contract electronics manufacturer. - No guarantee of safety - An hour's drive from economic powerhouse Shanghai, Kunshan has been a key hub for Taiwanese-owned industry in China since the 1990s. "Back then, it was a rice field," recalls Annie Wang, an industrialist from the island who arrived in Kunshan in 1996. "Taiwanese companies were fortunate to coincide with the 30 most glorious years of Chinese manufacturing," she said. Now, Wang heads an electronics subcontracting manufacturing plant, a small technology park and a coffee utensil brand. At the height of the boom, Kunshan was home to more than 100,000 Taiwanese, according to unofficial figures from local associations. But the number of Taiwanese companies in the city has shrunk from more than 10,000 a decade ago to fewer than 5,000 today, according to the data. And the Taishang have felt the squeeze as relations between Taipei and Beijing plunge to their lowest depths in years. The Chinese Communist Party -- which claims Taiwan as its territory but has never controlled it -- has hardened its stance against alleged "Taiwanese independence activists", even calling for the death penalty for alleged secessionism. New rules, which also encourage citizens to report alleged pro-independence activities, have had a chilling effect on Taiwanese businesses in mainland China. "We are not sending Taiwanese employees (to China) because we don't know how to guarantee their safety," said industrialist Lee. "The initial favourable conditions have disappeared, and now there are many additional risks," Luo Wen-jia, vice chairman of the Straits Exchange Foundation, told AFP. China's economic woes and rising production costs are adding to the problems. "When we first went there, we thought that China's economy would continue to improve because its market is so large and its population is so big," Leon Chen, a Taiwanese businessman who worked at a battery component factory in the southeastern province of Jiangxi, said. "But we haven't seen this materialise because there are some issues -- there is the US-China trade war and there was the pandemic," he added. - Caught in crossfire - In response, Taiwanese manufacturers are turning to new, more profitable -- and less politically sensitive -- locales. "Some went to Vietnam, and some went to Thailand, Indonesia and the Philippines, and some returned to Taiwan," Luo said. Between 2016 and 2024, Taiwanese investments in Vietnam approved by the Ministry of Economic Affairs in Taipei soared 129 percent, from US$451 million to more than US$1 billion. Over the same period, those to mainland China fell 62 percent, according to the same source. This decline could deal a blow to Beijing's "united front" strategy, which has seen it lean on Taishang communities to promote Taiwan's political integration and, ultimately, unification. And as Beijing launches military drills practising a blockade of Taiwan and Taipei cracks down on Chinese spies, Taishang risk being caught in the crossfire. In October 2023, Foxconn was placed under investigation by Chinese authorities -- a move widely seen as linked to a bid for the Taiwan presidency by its founder. "There is no way to compare it with the heyday but we can still make ends meet," said Chen. "If the environment for doing business in China becomes worse and worse, we would have no choice but to leave." aas-oho/je/dan
Yahoo
15-05-2025
- Business
- Yahoo
Discover May 2025's Asian Stocks That Could Be Trading Below Estimated Fair Value
As global markets navigate a period of mixed performance and trade negotiations, Asian stocks have shown resilience, with key indices in China and Japan posting gains amid positive trade developments. In this environment, identifying undervalued stocks becomes crucial for investors seeking opportunities that may offer potential value relative to their estimated fair value. Name Current Price Fair Value (Est) Discount (Est) Ficont Industry (Beijing) (SHSE:605305) CN¥26.80 CN¥52.53 49% Boditech Med (KOSDAQ:A206640) ₩16120.00 ₩31078.75 48.1% People & Technology (KOSDAQ:A137400) ₩38250.00 ₩73496.26 48% Hyosung Heavy Industries (KOSE:A298040) ₩556000.00 ₩1081643.83 48.6% Shenzhen Yinghe Technology (SZSE:300457) CN¥18.01 CN¥34.35 47.6% GEM (SZSE:002340) CN¥6.33 CN¥12.10 47.7% Shanghai OPM Biosciences (SHSE:688293) CN¥40.51 CN¥77.39 47.7% Kolmar Korea (KOSE:A161890) ₩84400.00 ₩167658.11 49.7% Taiyo Yuden (TSE:6976) ¥2354.50 ¥4607.14 48.9% True Corporation (SET:TRUE) THB12.50 THB24.22 48.4% Click here to see the full list of 275 stocks from our Undervalued Asian Stocks Based On Cash Flows screener. Let's explore several standout options from the results in the screener. Overview: Wus Printed Circuit (Kunshan) Co., Ltd. is involved in the research, development, design, manufacture, and sale of printed circuit boards in China and has a market cap of CN¥60.86 billion. Operations: Wus Printed Circuit (Kunshan) Co., Ltd. generates revenue through the research, development, design, manufacture, and sale of printed circuit boards within China. Estimated Discount To Fair Value: 11.9% Wus Printed Circuit (Kunshan) reported strong earnings growth with net income rising to CNY 762.47 million in Q1 2025 from CNY 514.81 million a year ago. Trading at CN¥31.64, the stock is approximately 11.9% below its estimated fair value of CN¥35.9 and offers good relative value compared to peers, though its dividend yield of 1.58% is not well covered by free cash flows, indicating potential sustainability concerns despite robust profit forecasts. Upon reviewing our latest growth report, Wus Printed Circuit (Kunshan)'s projected financial performance appears quite optimistic. Navigate through the intricacies of Wus Printed Circuit (Kunshan) with our comprehensive financial health report here. Overview: Kokusai Electric Corporation develops, manufactures, sells, repairs, and maintains semiconductor manufacturing equipment globally and has a market cap of ¥724.92 billion. Operations: The company's revenue segments include the development, manufacture, sale, repair, and maintenance of semiconductor manufacturing equipment worldwide. Estimated Discount To Fair Value: 33.2% Kokusai Electric, trading at ¥3112, is significantly undervalued with a fair value estimate of ¥4656.8. Despite recent dividend adjustments, the company demonstrates strong earnings potential with forecasted annual profit growth of 14.3%, outpacing the JP market's 7.5%. Recent corporate guidance confirms robust revenue and net income expectations for fiscal year 2026, supporting its attractive valuation based on cash flows amidst a volatile share price environment and strategic debt management initiatives. Our comprehensive growth report raises the possibility that Kokusai Electric is poised for substantial financial growth. Dive into the specifics of Kokusai Electric here with our thorough financial health report. Overview: Baycurrent, Inc. is a consulting services provider in Japan with a market cap of ¥1.23 trillion. Operations: Baycurrent's revenue is derived entirely from its Consulting Business, amounting to ¥116.06 billion. Estimated Discount To Fair Value: 23.3% Baycurrent, trading at ¥8107, is undervalued with an estimated fair value of ¥10566.82. The company has initiated a share repurchase program worth ¥3 billion to enhance shareholder value and improve capital efficiency. With forecasted earnings growth of 18.9% annually, surpassing the JP market's 7.5%, Baycurrent's revenue growth also exceeds market expectations at 18.3% per year, reflecting its strong cash flow potential despite moderate profit growth forecasts for the coming years. Our earnings growth report unveils the potential for significant increases in Baycurrent's future results. Get an in-depth perspective on Baycurrent's balance sheet by reading our health report here. Reveal the 275 hidden gems among our Undervalued Asian Stocks Based On Cash Flows screener with a single click here. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SZSE:002463 TSE:6525 and TSE:6532. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
