Taiwan stocks flat, banks outperform on closer China-tie

TAIPEI: Taiwan shares ended flat on Thursday, with declines in defensives such as transportation and paper makers offset by gains in banking shares.

The main TAIEX index dropped 0.13 points to 6,966.35, after opening flat.

The financials sub-index was the top gainer, up 1.9 percent, with Cathay Financial Holding Co Ltd climbing 4 percent.

Taiwan's government said on Tuesday that qualified Chinese banks could invest in stakes of up to 5 percent in local banks.

Electronics plays slipped 0.5 percent. Nanya Technology Corp erased early gains and dropped 0.46 percent, after its chairman denied a report that it was in talks with Japan's Elpida Memory Inc on a possible tie-up.

The Taiwan dollar was down T$0.017 at T$30.302.

Foreign investors were net buyers on Wednesday, bringing their total buying to T$18.9 billion this month.