Wed, Jan 27, 2010 - Page 11 News List

[BUSINESS BRIEFS]

STAFF WRITER, WITH AGENCIES

Survey probes China plans

The most direct way that Taiwanese banks intend to invest in China is setting up branches there, a survey conducted by the Taiwan Academy of Banking and Finance (TABF) found yesterday.

Just over a third of the financial institutions surveyed (33.5 percent) said setting up branches was the fastest way to gain a foothold in China, while nearly a quarter (24.7 percent) said it would be best to buy a stake or inject capital into an existing bank.

The third and fourth most cited options were setting up subsidiaries (18.3 percent) and forming strategic alliances (15.4 percent).

The survey found that with the opening of the cross-strait financial sector, Taiwan’s financial service companies are eager to invest in China, with financial holding companies being the most aggressive. Local banks are also looking to cash in on the opportunity, as indicated by 83.7 percent of respondents.

The survey found that banks and companies are motivated by the desire to serve the needs of China-based Taiwanese businesses and optimism over the “tremendous potential of the Chinese market,” academic deputy director Lee Chih-jen (李智仁) said yesterday.

With the overall environment now conducive to cross-strait cooperation, Taiwan’s banks are considering diverse strategies to make inroads into the China market, Lee said.

The most popular location for Taiwanese banks looking to set up Chinese footholds is the Yangtze River Delta, as indicated by 85 percent of financial holding companies and 60.4 percent of banks in the poll.

That was followed by the Pearl River Delta, which was named by 18.6 percent of respondents.

China Air loses appeal

The Supreme Court rejected China Airlines Ltd’s (華航) appeal of a high court ruling on a leasing dispute, the carrier said in a stock exchange filing yesterday.

The Taiwan High Court in October ordered China Airlines to pay NT$1.1 billion (US$34.3 million) to Taiwan’s Civil Aeronautics Administration in aircraft leases. The court also ordered the airline to pay NT$898 million in interest dating back to 1997, the carrier said.

The airline plans to discuss suspending the payment to the aviation agency, according to the statement.

Vibo secures loans

Vibo Telecom Inc (威寶電信) received NT$3 billion (US$93.5 million) in three-year syndicated loans from five banks, including Chinatrust Commercial Bank (中信銀), Ta Chong Bank Co (大眾銀), Taishin International Bank (台新), EnTie Commercial Bank (安泰) and DBS Bank Ltd (星展), Chinatrust said in an e-mailed statement yesterday.

Transnet fully authorized

President Transnet Corp (統一速達), the home delivery service provider under Uni-President Group (統一集團), yesterday announced it had secured permanent authorization from its Japanese partner to manage Japanese delivery service Takkyubin (宅急便) in Taiwan.

In a statement, President Transnet said that instead of signing with Japan’s Yamato Transport every 10 years to carry the service in Taiwan, it now had a permanent partnership after a strong performance.

This is Uni-President’s second permanent partnership. The same business model applied to its 7-Eleven convenient store franchise.

First operational in Taiwan in 2000, Takkyubin is targeting delivery of 45 million parcels this year, according to the group’s CEO, Jason Lin (林蒼生).

NT dollar weakens

The New Taiwan dollar yesterday weakened by NT$0.085 to close at NT$32.055 against the US dollar on turnover of US$1.326 billion.

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