■ Shin Kong ups investment
Shin Kong Financial Holdings Co's (新光金控) life insurance unit is doubling its planned investment in China to 400 million yuan (US$48 million) to help it open a branch and gain a slice of the country's US$27 billion life insurance market.
Shin Kong Life Insurance Co (新光人壽) is increasing its investment in China because of the "huge potential" in the country's life insurance market, the parent said in a statement.
The nation's second-largest life insurer, which has operated a representative office in Beijing since 2001, is also "actively" seeking a Chinese partner, the statement said.
Taiwanese insurers are deemed as overseas insurance companies in China, which means they have to find a local partner to form a venture with a 50 percent shareholding ceiling.
Foreign insurers need to open a representative office in China for at least two years before they may apply for a license to open a branch.
Shin Kong Life is yet to apply for regulatory approval to open a China branch from Beijing and Taipei authorities.
■ Taiwan Cellular to sell stake
Taiwan Cellular Corp (台灣大哥大) plans to sell its stake in rival Chunghwa Telecom Co (中華電信) overseas or through private placement, a Chinese-language newspaper reported, citing Taiwan Cellular president Harvey Chang (張孝威).
Taiwan Cellular is also considering selling its 375 million shares of Chunghwa Telecom back to the company or by issuing bonds exchangeable into shares of Chunghwa, the report said.
■ Taipei-Moscow flights to start
Russia's Transaero Airlines is scheduled to open direct chartered flights between Taipei and Moscow amid signs of growing civil exchanges, officials said yesterday.
A Transaero passenger aircraft will make the maiden flight to Taipei on Jan. 18, the carrier's local agent told reporters.
The airline will provide one flight every two weeks from from Jan. 19 to March 15, it said. It said an additional flight will be added on Jan. 26 to meet the expected peak demand during the Lunar New Year holiday.
Local tourism agencies for the first time smell the potential need when China Airlines Co (華航) made a trial flight to Moscow on Aug. 24.
"Believe or not, it was fully booked," Yang Li-yun, spokesperson for Taiwan Orchid Express Ltd, which is a unit of Phoenix Tour (鳳凰旅行社).
The travelling time to Russia would be drastically shortened to 11 hours from about 20 hours for Taiwanese tourists, who previously had to transit in Europe.
Some 10,000 Taiwanese businesspeople and tourists travel to Russia each year.
■ Gasoline exports halted
Chinese Petroleum Corp (中油) may halt overseas sales of gasoline in the spot market until the first quarter to build inventory to meet rising domestic demand, company officials said.
Chinese Petroleum typically sells about 250,000 barrels a month of the motor fuel in the spot market. It halted exports in September because of increased local demand, and in October and last month after shutting a refinery unit for maintenance.
Gasoline use in the nation may rise as holidaymakers vacation at home during this month's school holidays and during the Lunar New Year holidays next month, the company said.
■ NT dollar weakens
The New Taiwan dollar yesterday turned weak against its US counterpart, declining NT$0.025 to close at NT$34.04 on the Taipei foreign exchange market.
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