Sat, Sep 24, 2016 - Page 11 News List

Taiwan Business Quick Take

Staff writer, with agencies

BANKING

M1B growth gains 1.62%

The monthly growth rates of monetary aggregates M1B and M2 last month rose 1.62 percent and 0.39 percent respectively, the central bank said in a statement yesterday. The annual growth rate of M1B, a narrow measure of the amount of money in circulation, last month rose 6.48 percent from the same period last year. The annual growth rate of the broader M2 monetary measurement — which includes M1B, time deposits, foreign-currency deposits and mutual funds — slowed to 4.51 percent, mainly because of a decline in net foreign-capital inflows and slower growth in time deposits, the bank said.

BANKING

Mega Bank files for damages

Mega International Commercial Bank’s (兆豐銀行) board yesterday filed compensation claims against the bank’s former chairman Mckinney Tsai (蔡友才) and former bank president Wu Hann-ching (吳漢卿) for damages caused by a compliance failure at the bank’s New York branch. The state-run bank said it plans to seek compensation of NT$5.71 billion (US$182 million) from the two and has asked lawyers to seek NT$1 billion in provisional seizure of their assets. The Financial Supervisory Commission last week fined the bank NT$10 million, among other punitive measures, for poor corporate governance and internal controls that led to a US$180 million fine by US regulators last month for breaches of the US’ Bank Secrecy Act.

ACQUISITIONS

XPEC offices raided

Prosecutors and inspectors yesterday raided offices of XPEC Entertainment Inc (樂陞科技) and Bai Chi Gan Tou Digital Entertainment Co (百尺竿頭數位娛樂), as well as the residences of XPEC chairman Aaron Hsu (許金龍) and several others across the nation, as the judicial authorities probe possible financial irregularities in relation to Bai Chi’s failed acquisition of a 25.17 percent stake in XPEC last month. Prosecutors also summoned about 50 people for questioning, including Hsu and XPEC’s three independent board members, in order to gather more information about the botched deal and possible violations of the Securities and Exchange Act (證券交易法) and the Criminal Code (刑法).

FINANCE

Chailease income growing

Chailease Holding Co Ltd (中租控股), the nation’s top leasing services provider, yesterday said that its net income last month increased 3 percent year-on-year to NT$620 million, bringing its aggregate net income for the January-to-August period to NT$4.81 billion, an expansion of 5 percent from the same period last year. The company reiterated a promising outlook in the remaining months of the year, driven by more commercial aircraft leasing in Taiwan and expectations of seasonal financing needs in China, as well as new business from its subsidiaries in Southeast Asia.

AUTOPARTS

Macauto expecting growth

Macauto Industrial Co (皇田), which has a 15 percent global share of the automotive sunshade market, might see significant contribution from its Mexican plant next year, in addition to persistent growth of the Chinese market, Capital Securities Corp (群益證券) said in a note yesterday. Macauto’s plant in Mexico, which has started a trial production this quarter, helps meet clients’ demand to export to the North American market. The company’s planned new plant with expanded capacity could become its “major growth driver” next year, Capital said. Macauto reported total sales of NT$2.85 billion in the first eight months this year, up 20.8 percent year-on-year.

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