Wed, Aug 22, 2012 - Page 14 News List

[ BUSINESS BRIEFS ]

Staff writer, with agencies

TAIEX breaks 7,500 mark

The TAIEX rose yesterday, closing above the 7,500-point level for the first time in over three months on strong performances by the financial and electronics sectors.

The benchmark index, which ranged from a high of 7,536.32 to a low of 7,459.50, closed up 74.9 points, or 1.01 percent, at 7,506.81 on turnover of NT$77.61 billion (US$2.59 billion).

A total of 2,565 stocks closed up and 1,674 finished down, while 453 remained unchanged.

FSC tightens rules

The Financial Supervisory Commission (FSC) yesterday tightened requirements for domestic life insurers to purchase real estate properties to improve their profitability, while preventing land hoarding by them.

Real estate investments by domestic life insurers should generate minimum yields of 2.125 percent, from the current 1.875 percent, or 75 basis points higher than interest rates on two-year postal savings deposits, the commission said in a statement.

Property disposals one year after purchase — including transfers from self-use to investment classifications — should win board approval to ensure such transactions are legal, legitimate and reasonable, the statement said.

Life insurers also must meet the requirement of “quick returns” in dealing with collateralized real estate properties, meaning they must start to generate minimum yields two years after acquisition

Regional headquarters sought

Taiwan is hoping to attract more foreign companies to set up regional headquarters in the country in its bid to position the nation as an Asia-Pacific regional hub, Minister of Economic Affairs Shih Yen-shiang (施顏祥) said yesterday.

The number of regional headquarters is expected to double from the current 150 to 300 within three years as more foreign companies expand their presence in the country, Shih said at a press conference.

Based on a ministry survey of 800 foreign companies in Taiwan, 46.2 percent said they intend to expand their businesses in Taiwan over the next three years, potentially generating investment of NT$43 billion and creating 9,500 jobs.

FSC fines Standard Chartered

The FSC yesterday fined Standard Chartered Bank (Taiwan) NT$6 million for lax internal control, the commission said in a statement.

The local unit of the British banking group failed to exercise due oversight and consequently an employee did not follow proper procedures when processing loan applications

Far EasTone to expand VOD

Far EasTone Telecommunications Co (遠傳電信), the third-largest mobile operator in the nation, said on Monday it plans to expand the user pool of its video-on-demand (VOD) service through partnerships with smart TV brands.

Far EasTone expects its number of video service users to double from the current 50,000 to 100,000 next year, as the company has launched an application for the service that can be installed to Samsung Electronics Co’s Internet-connected TVs.

The company on Monday launched an upgraded version of the on-demand service and the app for Samsung’s smart TVs, which allows users to watch more than 500 movies and films on various devices such as PCs, smartphones, tablets and smart TVs. Far EasTone expects to add 1,000 movies and films to the service’s database within one year.

NT dollar gains ground

The New Taiwan dollar rose against the US dollar yesterday, adding NT$0.055 to close at NT$29.975. Turnover totaled US$528 million during the trading session.

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