TAIPEI — Shares of select local notebook computer suppliers trended lower on the Taiwan Stock Exchange yesterday amid fears that the removal of Bo Xilai as party chief of Chongqing will affect operations at their production bases in the southwestern Chinese city, dealers said.
However, the current downward pressure on the notebook computer stocks could be simply a knee-jerk reaction to the news of the change in China’s political power spectrum, they said, adding the country’s long-term goal to develop Chongqing is unlikely to be reversed just because of Bo’s departure.
Among the notebook computer firms, Asustek fell 2.46 percent to close at NT$278 and Acer lost 1.04 percent to end at NT$42.95. “Bo’s ouster has been amplified by the local media, striking the nerves of many investors in the local market as fears have escalated that Chongqing will change the course of its development after the sacking,” Grand Cathay Securities analyst Mars Hsu said.
“However, I do not think China will reverse its policy which aims to transform Chongqing as a transit point between the mainland and Europe since the policy was mapped out by the Chinese central government, not by Bo,” Hsu said. “I do expect the losses suffered by these notebook computer firms to be short-lived.”