Fri, Feb 17, 2017 - Page 12 News List

Hua Nan Financial stepping up local share holdings

SLOW AND STEADY:The firm said it will be cautious in its investments denominated in foreign currencies in anticipation of a rate hike in the US

By Ted Chen  /  Staff reporter

State-run Hua Nan Financial Holding Co (華南金控) yesterday said it will expand its portfolio of Taiwanese stocks by between NT$3 billion and NT$5 billion (US$97.43 million and US$162.38 million).

It will add companies listed on the FTSE Taiwan 50 Index and other blue chips to its equity portfolio, as well as exchange-traded funds tracking Taiwanese stocks, it said.

In anticipation of possible effects from US interest rate hikes, the company will take a conservative approach in its foreign-currency-denominated bond investments, it added.

The company said it has shortened its preferred bond duration from 4.8 years to 4.5 years.

The proportion of foreign bonds that are slated to be held until maturity will be raised from 46 percent to 50 percent, it said.

As of the end of last year, the company held US$1.63 billion in US debt, a figure expected to rise to US$2.5 billion by the end of this year, it said.

Hua Nan Commercial Bank (華南銀行) has set a target to improve its net interest margin from 1.03 percent last year to 1.05 percent at the end of this year.

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