Central bank changes policy
The central bank will accept foreign currency redeposits for one year from lenders starting tomorrow to absorb excess liquidity.
The move is to ensure stability in the financial system, the Central Bank of the Republic of China said in an e-mailed statement yesterday. It previously took only local-currency redeposits from banks.
The central bank on Jan. 7 cut its benchmark interest rate to 1.5 percent, the sixth reduction in four months, after exports last month plunged by a record 41.9 percent. The central bank has cut rates by a total of 2.125 percentage points since September.
Sun Moon project allocated
A NT$1.92 billion (US$58 million) real-estate development contract has been awarded to Hong Kong’s Bonds Group (寶聲集團) to build a tourist resort at Sun Moon Lake, the Ministry of Transportation and Communications said in a statement.
The two-stage project will include a 265-room tourist hotel, convention center and a wedding banquet hall followed by a 101-room luxury hotel and villa, according to a statement posted on the ministry’s Web site on Friday.
The resort will be developed on 2.8 hectares over 4 years, with a lease period of a further 46 years, before the site is handed back to the government, the statement said.
Firms demand compensation
A dozen Taiwanese companies are seeking NT$700 million from China for losses caused by tainted milk products, a newspaper said yesterday.
The companies, including the King Car Group (金車集團), a leading food and beverage group, are jointly seeking the compensation from China, the Chinese-language Liberty Times (the Taipei Times’ sister newspaper) said.
Taiwan’s Straits Exchange Foundation has informed China’s Association for Relations across the Taiwan Strait of the firms’ demand for damages, and is waiting for a reply, the paper said.
China to boost fund investment
China’s stock regulator said the government will look into ways to encourage long-term investment in the stock market by funds.
The government will try to expand the share of investment by social security funds, company pension funds and other long-term funds in the stock market, Shang Fulin (尚福林), chairman of China’s Securities Regulatory Commission, said in an article in Qiushi magazine that was reproduced on the central government’s Web site.
HP agrees to salary vote
Hewlett-Packard Co, the world’s biggest maker of personal computers, agreed to let shareholders hold nonbinding votes on executive-compensation policies.
The board’s plan, if approved by investors at next year’s annual meeting, would allow shareholders to vote on executive pay at the following meeting in 2011, Hewlett-Packard said in a statement on Friday.
AMD to cut 9% of global staff
Advanced Micro Devices Inc (AMD) plans to cut 1,100 jobs, 9 percent of its global staff, as the slumping chip maker retrenches during a slowdown in sales of personal computers.
The Sunnyvale, California-based company says 900 workers will have their positions cut. The rest of the reductions are coming from attrition and the previously announced sale of a business unit.
NT dollar declines
The New Taiwan dollar lost ground against the US currency on the Taipei Foreign Exchange yesterday, declining NT$0.141 to close at NT$33.501. Turnover was US$216 million.