Business & Economy

Apple’s Taiwanese supplier’s stock falls over China tax audit

Shanghai, China, Oct 23 (EFE).- Taiwanese technology company Hon Hai Precision Industry, known internationally as Foxconn, fell on the stock market Monday after it became known this weekend that several of its subsidiaries in China are being subjected to a tax audit.

After 11am local time (03:00 GMT), the company’s shares fell 1.65 percent on the Taipei Stock Exchange, while its subsidiary Foxconn Industrial Internet, listed in China, plummeted to the limit of 10 percent daily variation imposed by the Shanghai Stock Exchange.

As shown Sunday by state newspaper Global Times, the audit comes after an investigation said the group’s subsidiaries in the provinces of Canton and Jiangsu are “suspected of violating local regulations.”

The land use of subsidiaries of Foxconn – an assembly of multiple products of the American Apple such as the iPhone – in the central regions of Hubei or Henan is also being investigated, the newspaper added.

An academic cited by the Global Times said this is a “normal procedure” when there are suspected violations and noted that Foxconn subsidiaries “are obliged to actively cooperate (…), and if there are really violations of laws and regulations “They must admit their mistakes, accept sanctions and rectify them.” EFE


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