New holding companies become listed on TAIEX

Two newly launched financial holding companies yesterday were listed on the stock market, with one of the firm's shares rising and the other's falling.

Shares of the Chiao Tung Bank Financial Holding Co (交通銀行金控), formed by state-controlled Chiao Tung Bank (交通銀行), began trading yesterday. The company's stocks opened at NT$19.6 per share and rose 3.6 percent to close at NT$20.3.

Chiao Tung Bank Financial Holding -- which already incorporated International Securities Co (國際綜合證券) and Chung Hsing Bills Finance Corp (中興票券) -- announced yesterday it will take over one insurer, Central Insurance Co (中央產險), and three brokerages -- Barits Securities Corp (倍利證券), Concord International Securities Co (致和證券) and Sunrise Securities Co (日陞證券).

Asked when the share swap ratio for the mergers will be decided, Chuang Kuo-hsiung (莊國雄), president of the delisted Chiao Tung Bank, said, "The ratio of swap exchange [between the bank and its new partners] will be calculated and finalized no later than the end of June."

The Chiao Tung Bank Financial Holding is also considering a merger with state-controlled International Commercial Bank of China (ICBC, 國際商銀), although no time-frame has been set for the plan, Chuang said. "It's up to the ICBC's new chairman, Lin Tzong-yeong (林宗勇)."

The former vice finance minister refused to comment on the possible partnership.

Lin will officially become head of the ICBC this week, replacing Lee Yung-san (李庸三) who will now become the Minister of Finance.

Lee, a veteran banker, said that Chiao Tung Bank Financial Holding has outshone 12 other financial holding companies by being the first to combine with banks, securities firms and insurers to provide a complete cross-selling platform.

At the same ceremony, former finance minister Yen Ching-chang (顏慶章) said that the bank's industrial background will provide a solid foundation for the holding company to develop its one-stop shopping services.

The bank said in a written statement that its financial holding company -- with capital of NT$100 billion -- will have 117 branches in the country after the planned merger is completed.

Fuh-Hwa Financial Holding Co (復華金控), formed by Fuh-Hwa Securities Finance Corp (復華證券金融) and Fuh-Hwa Securities Co (復華證券), also began trading yesterday. The company's shares fell 3.8 percent to close at NT$12.55 per share, less than the listing price of NT$13.05.

While hosting the listing ceremony, the company's chairman Chang Chang-pang (張昌邦) said that Fuh-Hwa has distinguished itself from other financial holding companies by specializing in the securities business.

He said that Fuh-Hwa plans to take over Asia Pacific Bank (亞太銀行) and Singfor Life Co (幸福人壽) through a swap exchange before June, and is also interested in establishing venture capital and trust companies.