Morgan Stanley favoring Taiwanese, French banks

[dArKeR]

BLOOMBERG
Thursday, Apr 01, 2004,Page 11

Morgan Stanley recommended in-vestors buy banks such as China-trust Financial Holding Co (????) and France's Credit Agricole SA over Hong Kong lenders.

Shares of Hong Kong lenders BOC (Hong Kong) Holdings Ltd and Hang Seng Bank Ltd were "overpriced," Morgan Stanley said in its daily note to clients. The broker also recommended investors hold shares of South Korea's Kookmin Bank, Paris-based Societe Generale and Switzerland's UBS AG.

Morgan Stanley joins ABN Amro Asia Ltd, which this month advised investors switch to so-called defensive stocks in Taiwan such as financial-related companies. Domestic lenders are seen as beneficiaries of President Chen Shui-bian's (???) financial reforms.

Chen has reorganized the financial industry by pushing banks and insurers to cut off delinquent debtors, merge and expand into related businesses. The government set up a NT$140 billion fund to bail out bankrupt lenders and passed the Financial Holding Company Act (???????) in 2001, allowing lenders and insurers to merge.

http://www.taipeitimes.com/News/biz/archives/2004/04/01/2003116263

Chen Shui Bian, the Robert F. Kennedy of Asia.