Impact of Foxconn’s FII Listing on Shanghai Stock Market with Lightning Speed ​​

 Impact of Foxconn’s FII Listing on Shanghai Stock Market with Lightning Speed ​​

United Daily News Editorial (Taipei, Taiwan)

March 19, 2018

 Translation of an Excerpt

After the Mainland announced 31 preferential measures for Taiwan, in a short span of one week, its securities regulatory department approved the listing of Foxconn Industrial Internet Co., Ltd. (FII), a subsidiary of Hon Hai, on Shanghai’s A shares market. FII took only 36 days from application to being listed on the Shanghai stock market; this was considered the super billboard in the Mainland’s promoting preferential measures for Taiwan.

FII was just established three years ago; it encompasses Hon Hai Group’s cloud computing, network equipment, to the core industry of the Apple supply chain. After being listed on Shanghai A-shares market, it is estimated that in the future its market value will reach 2 to 3 trillion NT dollars, far surpassing the market value of its parent company, Hon Hai. For this reason, its impact could not be overlooked.

FII in the Hon Hai Group quickly won approval to be listed on the Shanghai A-shares market, further reflecting that the Mainland is rapid, ruthless, and sharp in luring businessmen from Taiwan. In recent years, the Mainland has been seeking artificial intelligence, cloud computing, and high-end manufacturing industries to take root on the Mainland. The Mainland authorities have been precisely zeroing in on FII as a target. It won unusual preferential treatment in clearing the barriers; thus we could see the Mainland’s ambition and determination in luring related technologies, which could not be described just as “united front tactics.”

In recent years, domestic investment in Taiwan has been sluggish; certain important investment projects have proceeded at a snail’s pace when encountering bureaucratic red tape. The Tsai government’s flip-flopping and wavering in environmental impact assessments, energy sources, and labor standard policies has further given many industries cold feet about investing in Taiwan. Cross-Strait competition has entered into a new stage; from a competition in capital and talents, it moves toward a competition in technology and the hearts and minds of the people; FII’s lightning speed in clearing the barriers shows that the Mainland has taken the lead. If the Tsai government cannot pragmatically confront the problem, only being able to offer young literati-style slogans or bureaucratic officialese, the end result would only be "weakening Taiwan" and not "strengthening Taiwan."

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