Signs of Goodwill and Progress

Robert Hsu, May 28, 2008

Among the many people who have contributed to the outpour of monetary donations for the earthquake are those of Taiwan. In fact, the people of Taiwan were the largest donors to the devastating Sichuan earthquake, with total donations exceeding $100 million. Several of the largest donors to the earthquake relief efforts were individual Taiwanese people, and their good deeds were widely reported throughout China, generating goodwill between the two lands.

Taiwan's aid during the earthquake's aftermath is just another sign of the improving relations between the island and Mainland China. And this is just the beginning of a better relationship for the future, as last week, Taiwan's new China-friendly president Ma Ying-jeou, was sworn into office.

In his first public speech as Taiwanese president, the charismatic Ma announced his goal to create a win-win situation between Taiwan and Mainland China. He wants the two lands to work together, allowing Taiwan to benefit from China's economic growth. In fact, meetings between senior political leaders from Beijing and Taipei have already resumed after eight years of hiatus.

Tthis is a monumental and well-received change from the policies of Taiwan's former president, Chen Sui-bien. Chen was against working with China during his eight-year term, causing political tension, domestic gridlock, and a less-than-stellar economic performance for Taiwan.

As a Taiwan-born international investor, I am very excited about the potential peace dividend that can come about from the change of leadership in Taiwan. Most people in Taiwan understand that the island stands to benefit enormously from closer ties to Mainland China, and I applaud the people of Taiwan for choosing pragmatism over ideology. I am confident that President Ma will provide the leadership that Taiwan needs to regain its stature in the global economy.

In the week before the inauguration, Taiwanese stocks rallied but then experienced some profit taking on May 20. The stocks have now stabilized despite a sharp sell-off last week in the U.S. Since Ma's presidency ushers in a new era for closer economic cooperation between Taiwan and Mainland China, I believe that the Taiwanese stock market will go through a multi-year bull market.

I have a few picks to profit from the goodwill between Mainland China and Taiwan. To find out more about them, become a member of Asia Edge today.

Sponsored Links

What's happening in the world's major foreign markets right now? Will current events affect the stocks in your portfolio? Read InvestorPlace Asia's Top Stories to find out everything you need to know in order to stay on top of global economic news.

more...

Every country has its own special customs and traditions. Being familiar with a country's culture can often make a difference in whether you gain or lose from investing in its stock market. Check out our culture section to learn more about the societies of the world's fastest-growing emerging economies.

more...

There's a lot happening around the world today, and it's important to know how it's affecting your investments. Watch the latest videos covering important Asia topics!

more...