The US-China trade tensions have had a limited impact on SinoPac Financial Holdings Co (永豐金控) as the company has diversified its loan portfolio in China, president Stanley Chu (朱士廷) said yesterday.
SinoPac’s exposure to China, totaling NT$86.39 billion (US$2.74 billion) as of the end of March, accounted for 72 percent of its net worth and was lower than most of its local peers, Chu told an investors’ conference in Taipei.
The Financial Supervisory Commission has demanded that financial firms with exposure to China exceeding 80 percent of their net worth pay more attention to credit extension.
“The company’s exposure to China surpassed 80 percent a few years ago, but we began reducing it from the second half of last year due to the escalating trade tensions,” Chu said.
As SinoPac’s exposure is spread across China’s top 20 industries, the company is not worried that the headwinds for a single industry would hurt its business, Chu said.
Its exposure to the US was NT$34.6 billion as of the end of March, which was not high, he said.
SinoPac expects the latest round of US tariffs — 25 percent on US$200 billion worth of Chinese goods effective from May 10 — would trim 0.15 percentage points off Taiwan’s economic growth for this year.
A full-blown trade war would hurt Taiwan, eroding GDP growth by 0.63 percentage points this year, Chu said.
Washington’s plan to impose another 25 percent tariff on US$300 billion of Chinese goods would be a bigger threat for Taiwan, SinoPac chief economist Jack Huang (黃蔭基) said.
Companies that are involved in China’s supply chains, including petrochemicals, machinery and networking communications, would be the ones most affected, Huang said.
The New Taiwan dollar fell NT$0.017 to close at NT$31.547 against the US dollar in Taipei trading yesterday, amid a sell-off of local shares by foreign institutional investors, Huang said, adding that he expects the greenback to weaken in the second half of the year.
SinoPac reported a net profit of NT$3.72 billion for the first quarter, up 41 percent year-on-year, bolstered by contributions from fee income, company data showed.
PLANNED OUT: The government is lifting sale and export restrictions on 60% of the 20 million masks made daily, but people can still make purchases using their NHI cards Twenty thousand boxes of 50 masks each would be on sale at FamilyMart convenience stores starting tomorrow, Taiwan FamilyMart Co Ltd (全家便利商店) said yesterday. A box of 50 masks would cost NT$249 for those with FamilyMart memberships and NT$299 for those without, with no limits placed on how many boxes a person can buy, the company said. Convenience store chain operator Hi-Life International Co Ltd (萊爾富) said that it would also start selling masks from tomorrow. It has yet to announce details about prices and quantity. Hypermarket chain operator Carrefour Taiwan (家樂福) said that it would start selling packs of five
Delta Electronics Inc (台達電), the nation’s leading power management solutions provider, has signed an agreement to acquire Canadian software firm Trihedral Engineering Ltd to bolster its smart production efforts, it said on Saturday. Delta said in a statement that it would acquire Trihedral for C$45 million (US$32.68 million) through its 100 percent-owned subsidiary Delta Electronics (Netherlands) BV. Trihedral specializes in supervisory control and data acquisition (SCADA) and industrial Internet of Things software, which would strengthen Delta’s hardware offerings in fast-growing areas such as automation, artificial intelligence and data analytics, it said. “The collection, monitoring and analyzing of data are critical to Delta’s two
From the customer’s perspective, car rental is a straightforward business. The only uncertainty is whether the hire company will charge you for the scratch they discover when you hand back the vehicle. Hertz Global Holdings Inc’s bankruptcy protection filing on Friday last week was a reminder that today even the simplest business models are underpinned by a lot more financial complexity than meets the eye. The proximate cause of Hertz’s demise was of course the sudden collapse in bookings caused by COVID-19 travel restrictions. The company’s monthly revenue last month fell 73 percent year-on-year, a shortfall that even the most resilient
BOOSTING BUYING: A source said that the idea of pre-ordering vouchers online is being considered, but the preliminary plan is for people to buy them at post offices A stimulus voucher program to be rolled out next month to boost consumption would be available not only to Taiwanese, but also foreign nationals and Chinese spouses who hold residency permits, a source familiar with the matter said yesterday. The government is fine-tuning the details of the program, which involves issuing vouchers for in-store purchases to revive buying amid the COVID-19 pandemic. During a radio interview on Monday last week, National Development Council (NDC) Minister Kung Ming-hsin (龔明鑫) said that the plan is to allow anyone, regardless of age or income level, to buy NT$3,000 (US$99.89) worth of vouchers for