Tax audit and land use investigation at Foxconn in China: impact on the stock price.

Tax audit and land use investigation at Foxconn in China: impact on the stock price.

According to a Global Times article, Taiwanese contract manufacturer Foxconn has been launched into a tax audit and land use investigation in China. The investigations are taking place in the provinces of Guangdong, Jiangsu, Henan and Hebei. The exact reason for the checks is not yet known, but the newspaper notes that Foxconn founder Terry Gou is running as a "regional leader" in Taiwan's upcoming elections. As a result of these reports, Foxconn's share price temporarily fell by up to 3 percent.

After the investigations against Foxconn, Terry Gou's political ambitions were also highlighted in Taiwan. Gou founded Foxconn in 1974 and built it into the largest contract manufacturer in the world. After retiring from the company's top management in 2019, he ran in the primaries for the presidential election in Taiwan. Gou is running as an independent candidate in the upcoming elections. There is speculation that there may be a connection between the investigations and Gou's political ambitions, but this is not the case, according to the Global Times. The investigations may have an impact on the market and the financial industry.

Because Foxconn plays an important role in the electronics industry and employs a large number of employees, the investigation could lead to uncertainty regarding its business operations and possible penalties. This could cause Foxconn's share price to fall and cause investors to reconsider their positions. In addition, the investigations could affect Foxconn's reputation, which could lead to a loss of trust among customers and partners. This could make other companies reluctant to work with Foxconn, which could have long-term effects on Foxconn's business.

It remains to be seen how the investigation will continue and whether further information about possible violations or misconduct by Foxconn will come to light. This is likely to have further impact on the market and financial industry and influence investor confidence in the company. It is important to continue to closely monitor developments and news regarding Foxconn and the investigations.