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.
Taiwan’s long-term economic competitiveness will hinge not only on national champions like Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) but also on the widespread adoption of artificial intelligence (AI) and other emerging technologies, a US-based scholar has said. At a lecture in Taipei on Tuesday, Jeffrey Ding, assistant professor of political science at the George Washington University and author of "Technology and the Rise of Great Powers," argued that historical experience shows that general-purpose technologies (GPTs) — such as electricity, computers and now AI — shape long-term economic advantages through their diffusion across the broader economy. "What really matters is not who pioneers
In a high-security Shenzhen laboratory, Chinese scientists have built what Washington has spent years trying to prevent: a prototype of a machine capable of producing the cutting-edge semiconductor chips that power artificial intelligence (AI), smartphones and weapons central to Western military dominance, Reuters has learned. Completed early this year and undergoing testing, the prototype fills nearly an entire factory floor. It was built by a team of former engineers from Dutch semiconductor giant ASML who reverse-engineered the company’s extreme ultraviolet lithography (EUV) machines, according to two people with knowledge of the project. EUV machines sit at the heart of a technological Cold
TAIWAN VALUE CHAIN: Foxtron is to fully own Luxgen following the transaction and it plans to launch a new electric model, the Foxtron Bria, in Taiwan next year Yulon Motor Co (裕隆汽車) yesterday said that its board of directors approved the disposal of its electric vehicle (EV) unit, Luxgen Motor Co (納智捷汽車), to Foxtron Vehicle Technologies Co (鴻華先進) for NT$787.6 million (US$24.98 million). Foxtron, a half-half joint venture between Yulon affiliate Hua-Chuang Automobile Information Technical Center Co (華創車電) and Hon Hai Precision Industry Co (鴻海精密), expects to wrap up the deal in the first quarter of next year. Foxtron would fully own Luxgen following the transaction, including five car distributing companies, outlets and all employees. The deal is subject to the approval of the Fair Trade Commission, Foxtron said. “Foxtron will be
INFLATION CONSIDERATION: The BOJ governor said that it would ‘keep making appropriate decisions’ and would adjust depending on the economy and prices The Bank of Japan (BOJ) yesterday raised its benchmark interest rate to the highest in 30 years and said more increases are in the pipeline if conditions allow, in a sign of growing conviction that it can attain the stable inflation target it has pursued for more than a decade. Bank of Japan Governor Kazuo Ueda’s policy board increased the rate by 0.2 percentage points to 0.75 percent, in a unanimous decision, the bank said in a statement. The central bank cited the rising likelihood of its economic outlook being realized. The rate change was expected by all 50 economists surveyed by Bloomberg. The
RSS