Kong meets London mayor \n \nVisiting Lord Mayor of the City of London Robert Finch met with Financial Supervisory Commission (FSC) Chairman Kong Jaw-sheng yesterday to explore the possibilities for financial cooperation and exchanges between Taiwan and the British capital. \nDuring the meeting, Finch and Kong exchanged views on financial regulation frameworks and future cooperation between the FSC and the British Financial Supervisory Authority (FSA). \nIn addition, Finch also briefed Kong on the overall condition of financial services development, in which London has abundant experience, with a view to boosting bilateral exchanges in the field. He disclosed that a FSA delegation is scheduled to arrive in Taiwan in late November or December to discuss various cooperation projects with FSC officials. \nAt present, 13 Taiwan-based enterprises, including Acer Sertek Inc (宏科), Hon Hai Precision Industries Corp (鴻海精密), TECO Electric and Machinery Co (東元電機), Yangming Marine Transport Corp (陽明海運) and Evergreen Marine Corp (長榮海運) are listed on the London Stock Exchange. \nBank cleared to sell bonds \n \nJih Sun International Bank (日盛銀行), the banking arm of Jih Sun Financial Holdings Co (日盛金控), won approval to sell up to NT$5 billion (US$147 million) of bonds backed by car loans, the financial regulators said. \nHVB Group is lead manager of the bond sale, the first local securitization product backed by car loans, the Financial Supervisory Commission said in a statement. Deutsche Bank AG is trustee of the issue, it said. \nThe bonds will be split into two lots. The first lot, which will be senior debt, is expected to be assigned credit ratings of AA- by Standard & Poor's, its fourth-highest investment grade, and Aa3 by Moody's, also its fourth-highest rating, the statement said. The second portion, subordinated debt, won't be rated. \nBank opens London branch \n \nThe Bank of Taiwan (臺灣銀行) opened a London branch on Thursday after maintaining a representative office in the British capital for 12 years. \nBank of Taiwan chairman Joseph Lu (呂桔誡) said the London branch is the bank's seventh overseas branch after New York, Los Angeles, Hong Kong, Singapore, Tokyo and Johannesburg. \nLu said the bank will promote trade and investment between Taiwan and the EU through the London branch. \nIn addition to the Bank of Taiwan, three other Taiwan-based commercial banks -- the First Commercial Bank (第一銀行), the Hua Nan Commercial Bank (華南銀行) and the Chang Hwa Bank (彰化銀行) -- have also set up London branches. \nInsurers urged to stop policies \n \nThe FSC will ask insurers to stop selling policies aimed at helping investors evade inheritance taxes, said Susan Chang (張秀蓮), vice chairwoman of the commission. \nThe regulator is working with the finance ministry to prevent people of old age or those suffering serious illnesses from avoiding the taxes by taking out insurance policies, Chang said. \nThe government is taking measures to crack down on tax evasion as it faces a budget deficit of NT$304 billion (US$9 billion) this year and interest costs on national debt of more than NT$3 trillion, an all-time high. \nThe budget deficit is estimated at NT$292.9 billion for next year. \nNT dollar down \n \nThe New Taiwan dollar yesterday traded lower against its US counterpart, declining NT$0.023 to close at NT$33.925 on the Taipei foreign exchange market. \nTurnover was US$487 million.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s