The nation's chief financial regulator yesterday told legislators a probe into alleged insider trading by siblings Thomas Wu (
The two Wu brothers are fighting for control of Shinkong Synthetic Fibers Corp (
"We'll launch an investigation if there are any irregularities," Financial Supervisory Commission (FSC) Chairman Kong Jaw-sheng (龔照勝) told the legislature's finance committee.
Kong made the remarks after DPP Legislator Lin Wen-lang (林文郎) accused Thomas Wu of dumping over 90 million shares of Taishin Financial Holding Co (台新金控), owned by the fiber-maker, hours before the Ministry of Economic Affairs ruled last Wednesday that his younger brother Eric Wu should be the lawful chairman of Shinkong Synthetic Fibers.
Thomas Wu then bought back the shares through three subsidiary companies, a move which market insiders believe was aimed at preventing Eric Wu from buying more shares in Taishin Financial in the future, should the ministry's ruling designate him as chairman of Shinkong Synthetic Fibers.
The fiber-maker owned a 5 percent stake in Taishin Financial.
Thomas Wu is currently chairman of Taishin Financial, while his elder brother Eugene Wu (
The DPP's Lin also accused Eric Wu, who is a Taiwan Solidarity Union legislator and chairman of Taiwan Securities Co (
Taiwan Securities bought over 120 million shares of Shinkong Synthetic Fiber last Wednesday, when the ministry ruled that he was the fiber company's lawful chairman.
Boost performance?
It is speculated that Eric Wu bought the fiber company's shares to boost its stock performance and to celebrate the final ruling that he would take over the chairmanship from his elder brother.
Despite the family squabble, shares of Shinkong Synthetic Fibers have continued to climb, rising from NT$6 per share in early August, to NT$9.35 per share yesterday -- an increase of nearly 50 percent.
"As long as the firm's financial portfolio is healthy, the dispute over its leadership shouldn't have too much impact," according to one stock analyst, who refused to be identified.
"On the contrary, the fiber company's shares have performed pretty well, since there may be efforts to boost it," he added.
Although Thomas Wu vowed to dispute the ministry's decision last week, the fiber company's new board met yesterday and agreed that the firm will be temporarily headed by the Wus' mother, Wu Kuei-lan (
Last week, the ministry ruled that the old board, which had elected Thomas Wu as chairman, should have been reshuffled.
As such, no chairman elected by the old board was legitimate since a letter of re-assignment had arrived before the board meeting on Aug. 6.
The EU and US are nearing an agreement to coordinate on producing and securing critical minerals, part of a push to break reliance on Chinese supplies. The potential deal would create incentives, such as minimum prices, that could advantage non-Chinese suppliers, according to a draft of an “action plan” seen by Bloomberg. The EU and US would also cooperate on standards, investments and joint projects, as well as coordinate on any supply disruptions by countries like China. The two sides are additionally seeking other “like-minded partners” to join a multicountry accord to help create these new critical mineral supply chains, which feed into
Elon Musk’s lieutenants have reached out to chip industry suppliers, including Applied Materials Inc, Tokyo Electron Ltd and Lam Research Corp, for his envisioned Terafab, early steps in an audacious and likely arduous attempt to break into the production of cutting-edge chips. Staff working for the joint venture between Tesla Inc and Space Exploration Technologies Corp (SpaceX) have sought price quotes and delivery times for an array of chipmaking gear, people familiar with the matter said. In past weeks, they’ve contacted makers of photomasks, substrates, etchers, depositors, cleaning devices, testers and other tools, according to the people, who asked not to
Japan approved ￥631.5 billion (US$3.97 billion) in additional subsidies to hasten Rapidus Corp’s entry into the high-stakes artificial intelligence (AI) chipmaking arena, ramping up support for a project widely regarded as a long shot. The capital is intended to bankroll Rapidus’ work for information technology firm Fujitsu Ltd, one of the initial customers that Tokyo hopes would get the signature endeavor off the ground. The new money raises the fees and investments that the government is injecting into the start-up to ￥2.6 trillion by the end of the current fiscal year to March next year, the Japanese Ministry of Economy, Trade and
The founder of Chinese property giant Evergrande Group (恆大集團) has pleaded guilty to charges of fraud and bribery, a court said yesterday, the latest blow for what was once the country’s leading developer. Evergrande’s rise was propelled by decades of rapid urbanization and rising living standards, but in 2020, its access to credit dramatically narrowed when the government introduced curbs on excessive borrowing and speculation. The company defaulted in 2021 after struggling to repay creditors. Founder Xu Jiayin (許家印), 67, known as Hui Ka Yan in Cantonese, was reportedly held by police in 2023, with Evergrande saying he had been subjected to
RSS