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R.O.C. TAIWAN FUND ISSUES MONTHLY UPDATE

            R.O.C. TAIWAN FUND ISSUES MONTHLY UPDATE
    NEW YORK, Nov. 18 /PRNewswire/ -- The R.O.C. Taiwan Fund today


issued the following monthly update:
                 Market Environment -- October 1991
    The Taiwan Stock Exchange index declined 9.8 percent in October. The market moved within a fairly narrow range in the first 10 days of trading with the index on Oct. 12 at 4824, down only slightly from the Sept. 30 close of 4867.  It then became rather volatile for the rest of the month.  The index declined 15.2 percent to the month's low of 4089 on Oct. 22 and then rose on four of the last five trading days to close out the month at 4390.  Trading activity continued to weaken.  Average daily volume of 388 million shares was the lowest level since January 1989 while average turnover of about $589 million was at a three-year low.
    Political concerns weighed on investors throughout October.  Early in the month, one group opposed to the government's sedition law threatened to disrupt the national day military parade on Oct. 10. Although the parade proceeded without serious incident, the largest opposition political party adopted a resolution on Oct. 13 calling for a Taiwan independent of China.  This apparently violates the sedition law in Taiwan.  Taipei and Peking hold that Taiwan is a part of China, and each claims that it is the only legitimate government of China.  In the week following the opposition party's action, political tensions rose and the TSE index fell 10 percent.  Both Taipei and Peking were sharply critical of the resolution, which was also opposed by many prominent business executives in Taiwan.  Tensions subsided somewhat at the end of the month as a large opposition protest rally proceeded in an orderly and peaceful manner.
    Total Return
                         One Month     Twelve Months
    ROC Fund (NAV)     -6.2 percent    25.9 percent
    TSE Index          -9.8 percent    32.3 percent
                      Portfolio Management
    The fund maintains a cautious approach to the market following the steep correction in 1990 and the uncertain outlook for corporate profitability this year.  The portfolio now holds about 80 percent of its assets in equities.  Such holdings are well diversified among top quality stocks.  The fund strategy continues to emphasize low turnover, blue chip stocks, and a fundamental approach to securities and economic analysis.
    Per Share Standing at Oct. 31:
    NAV        $9.75
    NYSE       $9.875
    -0-                       11/18/91
    /CONTACT:  Steven R. Champion (portfolio management), CEO/fund manager of International Investment Trust Co., Ltd., in Taipei, 02-713-7702; First Boston Corp. (brokers), 212-909-2000; or Don Belt (shareholder services) of T. Rowe Price Associates, Inc., in Baltimore, 800-343-9567, all for the R.O.C. Taiwan Fund/
    (ROC) CO:  The R.O.C. Taiwan Fund ST:  New York IN:  FIN SU: GK-JT -- NY045 -- 1377 11/18/91 11:26 EST
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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 18, 1991
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