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Political and economic risks surround emerging Asian stocks! Taiwan stocks will receive the most withdrawals of US$44 billion from foreign investors in 2022



U.S. stocks will be blacked out throughout 2022. Taking a comprehensive look at the political and economic risks in 2022, emerging Asian stocks, Taiwan stocks received the most foreign withdrawals of US$44.01 billion throughout the year, followed by India at US$17.02 billion, South Korea at US$9.66 billion, and the Philippines at US$1.25 billion However, foreign capital bought more than 1.09 billion US dollars in Vietnam, 4.27 billion yuan in Indonesia, and 5.96 billion yuan in Thailand.

Last week was the customs closure week in 2022. Emerging Asian stocks were mixed. Thailand rose 3.2% for the week, India rose 1.7%, while South Korea and Vietnam fell 3.3% and 1.3% respectively. In terms of capital movements, Thailand and Vietnam respectively Net inflows were US$560 million and US$93 million, while Taiwan continued to be withdrawn by foreign capital and lost US$890 million. South Korea and India had net outflows of US$410 million and US$380 million, respectively.

The Taiwan stock weighted index fell 133.9 points last week, or 0.9%, to close at 14137.7 points. Zhang Guihui, manager of CITIC Taiwan Wisdom 50 ETF, said that in 2022, it will be affected by the Russian-Ukraine war, the Federal Reserve’s interest rate hike, corporate inventory adjustments, and the Sino-US technology war. Affected by the impact, Taiwan stocks ended the year in the black, but after a wave of corrections, the price-to-earnings ratio has reached a relatively low point, and the investment value of groups with long-term themes and policy support has gradually emerged.

Looking forward to the market outlook for Taiwan stocks in 2023, Zhang Guihui pointed out that attention should be paid to the rebound in demand after China’s unblocking, and the inventory adjustment of the semiconductor group will be completed in the first half of 2023. The performance in the first quarter can be expected, but political and economic risks still surround it. For the investment environment, it is recommended that investors invest in groups with policy-related themes such as green energy, electric vehicles, and semiconductors. Stocks in economic cycle stocks should wait for opportunities to operate in a range.

Trading volume of Vietnamese stocks remained low, closing at 1007.1 points last week, a weekly decline of 1.3%. Zhang Chenwei, manager of China Trust Vietnam Opportunity Fund, said that when the trading volume was sluggish, foreign investors were still relatively active. As of last Friday, they had been net buying for six consecutive days. In 2022, Vietnamese stocks will be affected by the news and the lack of confidence of retail investors. The whole year of 2022 will be closed, and the price-to-earnings ratio will also be far below the five-year moving average.

Looking forward to 2023, Zhang Chenwei said that Vietnam’s economic growth strength is still optimistic by most international institutions, and most estimates fall above 6.5%. Due to the transfer of the supply chain, the amount of foreign direct investment (FDI) in 2022 will increase by 13.5% compared with 2021. It hit a new high in the past five years. In the long run, the fundamentals of Vietnam are still relatively optimistic. At present, it is still waiting for the stock market to return to the fundamentals, and the rebound momentum is relatively worth looking forward to.

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