Chinese Bank share trading to be suspended Monday

The Chinese Bank (中華銀行), a subsidiary of financially troubled Rebar Asia Pacific Group (力霸亞太企業集團), is expected to see trading of its shares suspended beginning on Monday, the Taiwan Stock Exchange Corp announced in a statement late on Thursday.

The lender's shares declined 6.94 percent at NT$1.61 (US$0.05) on the TAIEX after the announcement.

Bank runs at The Chinese Bank prompted the Financial Supervisory Commission to instruct the Central Deposit Insurance Corp (中央存保) to take over the lender on Jan. 5 midnight and trading in its shares has been limited to cash settlement since Jan. 8.

The Taiwan Stock Exchange said it has revoked the rights of the lender's shareholders as well as those of its boards of directors and supervisors in compliance with Article 62-2 of Banking Act (銀行法).

The exchange said the Securities and Futures Bureau has approved its proposal to suspend trading of the lender's shares next week.

Also on Monday, the names of those with bad debts of more than NT$1 million (US$30,500) with The Chinese Bank will be revealed by the financial regulator, along with those with large debts owed to the Enterprise Bank of Hualien (花蓮企銀) and the Taitung Business Bank (台東企銀), the commission said on Thursday, citing Article 11 of the Resolution Trust Committee Fund Regulatory Provisions (金融重建基金設置及管理條例).

Article 11 states that the names of those who owe more than NT$1 million to banks taken over by the government must be published.