UPDATE 1-Franklin Templeton-backed Taiwan firm to raise fund
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By Faith Hung
TAIPEI, Jan 7 (Reuters) - A Taiwan fund firm, in which U.S. fund giant Franklin Templeton holds a stake, said on Wednesday it aims to raise T$10 billion ($303 million) in new capital this year, banking on a market rebound after the 2008 sell-off.
"2009 would be a very good year to invest in stocks, though no fat returns are likely given the U.S. economy just started to recover," James Hwang, president of Franklin Templeton First Taiwan Securities Investment Trust, told Reuters in an interview.
Investors' expectations are rising as world governments have lowered interest rates and cut taxes to boost economies. On Wednesday, Asia stocks hit a two-month high, extending a rally into a 10th straight day. [ID:nSP389078]
Franklin Templeton is a unit of publicly listed Franklin Resources (BEN.N).
Some of the new funds will be invested in stocks in the Greater China region, with China in focus after Beijing launched a 4 trillion yuan ($586 billion) economic stimulus package, Hwang said.
The stimulus package and improving ties between Taiwan and China have triggered hopes among Taiwan fund managers to invest in the Greater China region.
The fund arms of Yuanta Financial (2885.TW) and Polaris Financial Group also said they have similar plans.
"China's infrastructure and consumption stocks will benefit most from the stimulus package," Hwang said.
Taiwan's Uni-President Enterprise (1216.TW) and Hon Hai (2317.TW) -- which have massive investments on the mainland -- were also among potential buying targets, he said. ($1=T$32.98) (Additional reporting by Yvette Chen; Editing by Ken Wills and Erica Billingham)
