China bank lending rises
China’s bank lending rose last month, the central bank said yesterday, as money poured into a massive rescue for the country’s stock market. Domestic banks extended new loans of 1.48 trillion yuan (US$233.9 billion), up from 1.27 trillion yuan in June — almost twice the estimate of economists surveyed by Bloomberg News — the People’s Bank of China said. For the first seven months of this year, Chinese banks extended a total of 8.04 trillion yuan in new loans, up by 2.15 trillion yuan from the same period last year, the central bank said.
China car sales drop 6.6%
Chinese consumers bought the fewest passenger vehicles in 17 months last month, extending a slump in the world’s largest car market, as deeper discounts failed to revive demand. Retail deliveries fell 2.5 percent to 1.3 million units, the lowest level since February last year, according to the China Passenger Car Association. A separate set of figures from the China Association of Automobile Manufacturers showed passenger vehicle sales declined by 6.6 percent, also to a 17-month low.
Gap issues earnings forecast
Gap Inc is issuing a second-quarter earnings forecast that is below Wall Street analysts’ estimates. The company on Monday blamed US west coast port delays, foreign currency fluctuations and strategic maneuvers the San Francisco-based company is taking to turn around its namesake brand. The earnings outlook comes as the retailer, which also operates Old Navy and Banana Republic, posted a 3 percent drop for a key revenue measure last month. Analysts expected a 2.3 percent drop.
Symantec to sell Veritas unit
Symantec Corp plans to sell its Veritas data-storage business to Carlyle Group LP in a deal that was set to be announced yesterday, people with knowledge of the matter said. Carlyle would pay on the high side of a range between US$7 billion and US$8 billion, one of the people said. While no deal has been signed, talks were set to wrap up in time for an agreement to be announced yesterday, the day Symantec reports quarterly earnings, the people said. Carlyle spokesman Randy Whitestone declined to comment.
PAL profit soars in first half
Philippine Airlines Inc’s parent company saw its first-half profit soar nearly tenfold, boosted by strong demand during the peak summer months, the company said yesterday. Interim net income for January to June rose to 5.8 billion pesos (US$126.1 million) from 560 million pesos during the same period last year, PAL Holdings Inc said. Revenue increased to 55.9 billion pesos from 48.9 billion pesos, with passenger revenue up by 15 percent to 47.1 billion pesos, it added.
Banks shun Carmichael
Standard Chartered PLC on Monday said it would not advise or help finance the multibillion-dollar Carmichael coal mine in Australia, marking the second big bank to walk away from the project in a week. Environmental groups have been campaigning against the mine, being developed in Queensland by Indian conglomerate Adani Mining. Commonwealth Bank of Australia last week said it had ended its role as financial adviser on the project.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Shin Kong Financial Holding Co (新光金控) yesterday said that its insurance unit would adjust its investment portfolio after being banned from buying new stocks a day earlier by the Financial Supervisory Commission (FSC). “We will research what we can do based on the commission’s specific instructions after we receive the regulator’s formal documents,” Shin Kong Financial spokesman Sunny Hsu (徐順鋆) told the Taipei Times by telephone. The commission on Tuesday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$941,722) for reckless investment, and demanded that the insurer reduce its overseas investment ratio from 43 percent to 39 percent. The fine would affect
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms