Foreign bond issuance rises
New issues of foreign bonds have surged since last month in anticipation of upcoming regulatory changes aimed at limiting investment in the instrument, Financial Supervisory Commission data showed yesterday. The commission said that from the end of last month to the end of last week, new issues of 33 foreign bonds totaled US$11.61 billion, 47 percent greater than the US$7.89 billion from 22 new issues recorded in the same period last year. The commission had announced plans to limit life insurers buying bonds that are callable within five years, which have been snapping up foreign bonds ahead of the regulatory change, which is scheduled to take effect in April.
Prince sells Neihu building
Prince Housing & Development Corp (太子建設) yesterday sold an office building in Taipei’s Neihu District (內湖) for NT$2.6 billion (US$84.43 million), injecting confidence into the soft commercial property market. The buyer, CyberPower Systems Inc (碩天科技), plans to move its headquarters from Taipei’s Nangang District (南港) to Neihu, said Savills Taiwan Ltd (第一太平戴維斯), which brokered the deal. The building has 6,508 ping (21,514m2) of floor space, including parking, Savills said, adding that self-occupancy demand might continue to drive the market.
Taisugar to invest in biogas
State-run Taiwan Sugar Corp (Taisugar, 台糖) yesterday announced plans to produce electricity at 18 of its pig farms. The company said that it would install biogas power generation systems to make use of methane gas from swine manure, adding that it hopes to produce up to 2.12 megawatts (MW) of electricity by 2025 and contribute to the government’s goal of producing 30MW of biogas energy in the same period.
Kbro branches out to movies
Kbro Co (凱擘), the nation’s largest cable TV operator, yesterday announced that it has branched out into the movie theater business in Taiwan, China and Hong Kong. The firm has opened a new movie theater in Taichung, and has inked deals to build eight theaters in Hong Kong and Shenzhen, China, it said. Kbro is also eyeing the content market, and has outlined plans to invest in at least five feature films and three to four TV series per year. The company said it has begun collaborating with Netflix Inc on Chinese-language original content. In addition, a TV series produced by the company is to begin broadcasting in Taiwan next month, the company said, adding that plans for licensing abroad are under way.
Vanguard dividends rise
Vanguard International Semiconductor Corp (世界先進), which commands a 30 percent share of the global LCD panel controller chip market, yesterday said its board has approved a cash dividend of NT$3 per common share. The distribution is greater than the NT$2.6 per common share distributed by the chipmaker last year, setting an all-time high. It also translated into a dividend yield of 4.92 percent, compared with the stock’s closing price of NT$61 yesterday. The company’s board has also approved an initial investment of 1 million yuan (US$145,288) to establish a subsidiary in Shanghai to facilitate chip sales in China. The company is scheduled to hold an annual shareholders’ meeting on June 16 to approve the cash dividend distribution plan.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable