Taiwanese capital leasing companies in China may expand into its factoring market by setting up new units to help customers process account receivables, the Financial Supervisory Commission said yesterday.
The latest deregulation aims to help capital leasing firms to expand in China given their close links to factoring service providers.
“Capital leasing and factoring companies may share business information and other resources so they can better tack clients’ cash flows and make best use of their capital,” the commission said in a statement.
Only capital leasing firms with capital of US$30 million or more are qualified to establish factoring units, and they must control 100 percent stakes in them to simplify capital structure and avoid conflict of interest, the commission said.
Currently, there are 19 Taiwanese capital leasing companies in China, 10 of them owned by domestic banks and another nine controlled by subsidiaries of financial holding companies, the commission said.
The capital leasing firms are in Suzhou, Tianjin, Shanghai, Chengdu, and Shenzhen, with combined investments of US$475 million, the commission said.
The commission also gave local banks the green light to sell gold and silver coins issued by China now that they can legally enter Taiwan and domestic lenders can conduct yuan business.
The easing will give Taiwanese extra investment channels, but banks must alert customers of risks, fees, and costs involved, the commission said.
Gold investment, particularly, does not generate interest income or enjoy deposit insurance coverage, and is subject to price volatility, the commission said.
Separately, the commission approved plans by state-run Hua Nan Securities Co (華南永昌證券) to acquire Miaoli-based G-Star Securities Co (金興證券) but maintain its number of outlets at 54 nationwide, the commission said.
The commission also fined Greater Tainan-based King’s Town Bank (京城銀行) NT$2 million for excessive investment in securities with below-par ratings.
Facing the rapidly evolving global COVID-19 pandemic, Citibank Taiwan Ltd (台灣花旗) has proactively taken precautionary measures. “The health and safety of our colleagues and their families, as well as our clients and the communities we serve, are of the utmost importance. We continue to take proactive measures to preserve their well-being while we maintain our ability to serve our clients,” Citibank Taiwan chairman Paulus Mok (莫兆鴻) said in a statement yesterday. “We have local and regional contingency plans in place, and we have well-established business continuity plans for the firm. We are monitoring the situation closely, adjusting our operations accordingly,
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