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R.O.C. TAIWAN FUND ISSUES MONTHLY UPDATE

           R.O.C. TAIWAN FUND ISSUES MONTHLY UPDATE
    NEW YORK, Dec. 12 /PRNewswire/ -- The R.O.C. Taiwan Fund (NYSE: ROC)


today issued the following monthly update:
    Market Environment -- November 1991
    The Taiwan Stock Exchange index declined 0.3 percent in November. Consecutive drops on the first three trading days lowered the index 2.6 percent to the month's low of 4279 on Nov. 4.  The market then slowly ratcheted upward as the index rose 6.2 percent to the month's high of 4544 on Nov. 22 before falling on six of the last seven trading sessions to close out the month at 4379.  Average daily trading volume of 466 million shares was the second lowest level this year.  Average turnover was about $823 million.
    As reflected in the rather weak trading activity, investors remained somewhat cautions in the run-up to national elections in late December. Trading, in fact, was focused on highly speculative issues.  The issue in the elections is not which party will win:  all analysts and even the opposition expect the ruling party to be victorious.  Rather, the opposition party had raised tensions in October by adopting a plank in its platform calling for a Taiwan independent of China.  Not only does the government claim sovereignty over all of China, but the advocacy of Taiwan independence apparently violates the sedition law.
    The economic news was mainly positive, however.  Following similar actions in the U.S. and Japan, Taiwan's central bank cut its rediscount rate from 6.625 percent to 6.25 percent and lowered reserve requirements half a percentage point on checking accounts and demand deposits.  In addition, the government announced that economic growth in the third quarter was 8.4 percent, easily exceeding the forecast of 7.3 percent. As a result, the forecast for the whole year has been raised from 7.0 percent to 7.2 percent.
    Total Return
                                1 Month        12 Months
    ROC Fund (NAV)            0.9 percent     9.7 percent
    TSE Index                -0.3 percent     0.0 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 81 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 Nov. 29:
    NAV           NYSE
    $9.86        $10.00
    -0-           12/12/91
    /CONTACT:  Steven R. Champion, chief executive officer/fund manager of International Investment Trust Co. (portfolio management), 02-713-7702 (in Taipei); First Boston Corp. (brokers), 212-909-2000; or Don Belt of T. Rowe Price Associates (shareholder services), 800-343-9567/
    (ROC) CO:  R.O.C. Taiwan Fund ST: IN:  FIN SU: FC-SM -- NY030 -- 1906 12/12/91 11:31 EST
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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Dec 12, 1991
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