Even as the newly-elected Taiwanese leader Ma Ying-jeou has assumed office, he could not boost the Hong Kong-listed Taiwanese stocks yesterday.

Analysts said that the stocks which performed sluggishly would be under correction in the short run after accumulating a certain increase earlier, and some sectors such as banking will still have room to rise with the improving ties between the mainland and Taiwan province.

Fubon Bank (Hong Kong) went down 4.33 percent or HK$0.36 to HK$7.96. Food manufacturers Tingyi Holdings edged up 0.18 percent to close at HK$10.98, and Uni-President China Holdings dipped 5.66 percent to HK$4.25.

Enlighten Securities and Futures Executive and Vice-president Ricky Cheung said the Taiwanese stocks have been overshot, and "their prices have surged substantially over the past few weeks. Investors take the opportunity to offload their stocks yesterday."

But he noted that some sectors would benefit from the relaxation of cross-Strait investment in the long run. "Fubon Bank, for example, does not have any footprint on the mainland, and its business will be strongly boosted if it is allowed to invest on the mainland."

Karl Thomson Securities Chief Portfolio Strategist Patrick Shum said the Taiwanese transportation companies would be the beneficiaries under the new Taiwanese leadership.

"Their businesses will surely see a sharp rise when the carriers are permitted to directly fly between the two places," said Shum.

(HK Edition 05/21/2008 page2)