A case of a strengthening Beijing Consensus?
Bloomberg has Taiwan’s China factor in focus: Ma’s victory is claimed by China’s Taiwan Affairs Office (国务院台湾事务办公室, official site here in Chinese) to show that “peaceful development of cross-straits ties” in the last four years with KMT in power was “the correct path that has won the support of the majority of the Taiwanese compatriots.”
That said, can be it be argued that economy and not emotion was the key to moving Taiwan’s voters this time round?
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Ma Victory Seen Boosting Taiwan Markets as Baer Considers Upgrading Stocks
By Weiyi Lim and Andrea Wong
Source – Bloomberg, Jan 16, 2012
The re-election of Taiwanese President Ma Ying-jeou, a booster of closer ties with China, is bullish for the island’s financial markets, according to Bank Julius Baer & Co., Citigroup Inc. and Uni-President Assets Management Corp.
Julius Baer, which oversees about $205 billion in client assets, is re-evaluating its “underweight” rating on Taiwanese equities and may buy airlines and hotel companies, Lee Boon Keng, head of the firm’s investment solutions group in Singapore, said by phone yesterday. Two-year bonds may rally as overseas investors buy Taiwan dollar-denominated assets to profit from a stronger currency, said Samson Tu, who helps manage $1.6 billion of fixed-income securities at Uni-President in Taipei.
Ma, the 61-year-old leader of the ruling Kuomintang Party, won a second four-year term as president after defeating Tsai Ing-wen, chairwoman of the Democratic Progressive Party, in Jan. 14 elections. Ma’s first term was characterized by the pursuit of closer ties with China through trade agreements and the ending of a six-decade ban on direct air, sea and postal links. Read the rest of this entry »