Taipei - Taiwan stocks dropped more than 3 per cent in morning trading Thursday, dampened by overnight drops on Wall Street and the death of Wang Yung-ching, founder of Taiwan's petrochemical giant Formosa Group, dealers said.

The Taiex index had fallen 164.5 points, or 3.14 per cent to 5,081.69 two and a half hours after the stock market opened.

Stocks of all six listed companies of the Formosa Group fell sharply on the death of the group's founder, dubbed the "god of management" and the second wealthiest man in Taiwan.

Wang's group, the most profitable business establishment in Taiwan last year with a net profit of 219 billion Taiwan dollars (6.84 billion US dollars), died Wednesday of heart failure during a visit to the US state of New Jersey. He was 92.

His death shocked both the government and the public in Taiwan with President Ma Ying-jeou and Premier Liu Chao-shiuan expressing regret and offering condolences to his family. (dpa)