FSC to relax regulation
The Financial Supervisory Commission (FSC) yesterday announced it would relax regulation to allow the offshore subsidiaries of locally listed companies to manage the bonus stocks and special investment accounts of overseas employees as qualified domestic institutional investors (QDII).
The relaxation will especially benefit China-based employees, who were only allowed to receive cash bonuses from Taiwanese companies, instead of stock options, commission Vice Chairman Wu Tang-chieh (吳當傑) told a media briefing.
“The new deregulatory move will help attract and retain overseas talent” because stock options provide incentives for employees to work harder, the commission’s press statement said.
However, Chinese employees will only be allowed to sell or transfer stocks through their QDII accounts while no share purchases will be allowed, Wu said.
Ministry to cut taxes
The government will cut the tax on transactions of stock futures by 60 percent, the Ministry of Finance said in a statement yesterday.
The levy for stock futures will fall to NT$4 for every NT$100,000 transacted, from NT$10 starting on Monday, the ministry said.
Shipping firm to expand
Yang Ming Marine Transport Corp (陽明海運), Taiwan’s second-largest shipping line, plans to more than triple the size of its dry-bulk fleet to 20 vessels within four years as China’s economic growth spurs demand for iron ore and coal.
The company has injected its six existing bulk ships into its Kuang Ming Shipping Corp (光明海運) unit, it said in a statement on its Web site. The bulk fleet has sales of about NT$4 billion ($124 million) a year, it said.
The Taiwanese shipping line plans to operate 18 panamax vessels and two capesize carriers by 2012, Lloyd’s List said yesterday, citing an interview with Kuang Ming general manager Guer Ren-yao (葛仁友).
The capesize vessels will be chartered in on 10-year contracts from 2012, the newspaper said.
Consumer confidence drops
Taiwan’s consumer confidence index (CCI) dropped 1.52 points to 54.32 last month, while six sub-indexes all posted declines from a month ago, according to a monthly survey released by the Research Center for Taiwan Economic Development at National Central University on Tuesday.
The sub-index that saw the largest decline last month was whether it is a good or bad time to buy stocks in the next six months, sliding 4.5 points to 53.4 last month.
A score below 100 indicates pessimism, while one between 100 and 200 indicates optimism.
Yahoo promotes Steven Ho
Yahoo Kimo Inc (雅虎奇摩) said yesterday it had promoted Steven Ho (何英圻) to general manager of its e-commerce group, effective on Wednesday, in an effort to create synergy after the popular Web portal’s merger with Monday Tech Co (奇科技於) on Aug. 5.
The company also said it had promoted Frank Chen (陳建銘) from vice president to general manager of Yahoo-Kimo’s sales group. Chen is instrumental in creating Yahoo’s partnership with seven of Taiwan’s domestic gaming companies, including Gamania Digital Entertainment Co (遊戲橘子), Giga Media Ltd (和信超媒), and Cayenne Entertainment Technology Co (紅心辣椒), the company said.
NT dollar drops against US
The NT dollar lost ground against the US dollar on the Taipei Foreign Exchange yesterday, declining NT$0.131 to close at NT$32.160.
A total of US$1.02 billion changed hands during the day’s trading.
HSBC Bank (Taiwan) Ltd (匯豐台灣商銀) has approved two sustainability-linked loans totaling NT$450 million (US$15.55 million) for Taya Group (大亞集團) and Sinbon Electronics Co (信邦電子), the bank said yesterday, adding that interest rates would fall if the borrowers’ sustainability performance improves. Those marked the first sustainability-linked loans granted by HSBC Taiwan, it said. While HSBC Taiwan has experience providing green loans for the nation’s developers of renewable energy sources to support their projects, the bank began focusing on sustainability-linked loans to meet rising demand from companies in other sectors planning to undertake sustainability programs, it said. “As we reward our clients who reach their
‘NEW TRAVEL MARKET’: The carrier initially planned to lay off about 8,000 people globally, but after government intervention reduced that to 18 percent of its workforce Cathay Pacific Airways Ltd (國泰航空) would cut 6,000 jobs and close its Cathay Dragon brand, the South China Morning Post reported, as part of a strategic review to combat the unprecedented damage caused by the COVID-19 pandemic. The Hong Kong-based airline is expected to officially announce the plan after the market close today, the newspaper said. It initially planned about 8,000 layoffs globally, but after government intervention reduced that to 18 percent of its total workforce, including about 5,000 jobs in Hong Kong, it said. The company, which posted a HK$9.9 billion (US$1.3 billion) loss in the first half, has for months
V-SHAPED RECOVERY: Local tech firms have benefited from strong demand for 5G deployment and electronic devices required for a low-contact economy, CIER said The Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) yesterday raised its forecast for the nation’s GDP growth this year to 1.76 percent, from its previous estimate of 1.33 percent, saying exports and private consumption have staged a V-shaped recovery from the COVID-19 pandemic in the second half of the year. “The upgrade aims to reflect the fast recovery in Taiwan’s exports and domestic demand,” CIER president Chang Chuang-chang (張傳章) told a media briefing. The Taipei-based think tank said the economy might have expanded 2.77 percent last quarter — emerging from a 0.78 percent decline in the second quarter — and would grow
Hon Hai Precision Industry Co (鴻海精密) founder Terry Gou (郭台銘) yesterday said that the company remains committed to its project in Wisconsin, but appeared to condition its completion on the receipt of state incentives, the Wall Street Journal reported. Gou said in a statement that Hon Hai, known as Foxconn Technology Group (富士康科技集團) outside of Taiwan, remains committed to its investment, although “market conditions and the COVID-19 pandemic” have altered the timing of its expansion and the specifics of its manufacturing plans. The company has over the past three years invested US$750 million to transform southeastern Wisconsin into a high-tech