FSC, HK counterpart sign pact
The Financial Supervisory Commission (FSC) said yesterday it had signed a memorandum of understanding (MOU) with its Hong Kong counterpart to promote bilateral financial supervision.
The commission said in a statement the pact signed with the Hong Kong Monetary Authority (HKMA) would facilitate the sharing and exchange of information, regular meetings, as well as assistance in carrying out financial inspections by the host country.
Taiwanese banks currently have 18 branches and two representative offices in Hong Kong, while Hong Kong lenders have three branches and two representative offices here, according to the commission.
The agreement was signed by FSC Vice Chairwoman Lee Jih-chu (李紀珠) and HKMA chief executive officer Norman Chan (陳德霖) in Hong Kong, the commission said, adding that the nation has so far signed bilateral financial supervision pacts with more than 40 countries.
Cathay to issue overseas bonds
Cathay Financial Holding Co (國泰金控), the nation’s largest financial services provider by assets, plans to sell up to US$800 million in three-year overseas convertible bonds, the Taipei-based company said in an exchange statement yesterday.
Proceeds from the US-dollar-denominated bonds will be used to strengthen its financial structure and to fund mergers and acquisitions, the statement said, without elaborating.
Cathay Financial’s shares rose 5.91 percent to close at NT$39.40 yesterday, a day after the company announced it would spend up to NT$9 billion (US$309 million) to buy back 200 million shares to shore up its share price.
Telecoms firms post sales rise
The nation’s telecom service providers reported billions of NT dollars in revenues in the first seven months of the year, with Chunghwa Telecom Co (中華電信) topping the list with a revenue of NT$111.5 billion, up 4.1 percent from a year earlier.
During the January-to-July period, the nation’s largest telecoms operator posted a net income of NT$29.41 billion, up 1.3 percent from the same period last year, although operating income was down 5.4 percent to NT$32.07 billion.
Taiwan Mobile Co (台灣大哥大), the nation’s second-biggest telecoms firm, said it posted consolidated revenues of NT$43.09 billion during the same period, while Far EasTone Telecommunications Co (遠傳電信) reported consolidated revenues of NT$42.714 billion.
Seven indicted for scam
Seven executives of a shell investment company have been indicted on charges of illegally collecting a total of NT$800 million and cheating 700 people, the Taipei District Prosecutors’ Office said on Wednesday.
Investigators searched the company’s headquarters in Taoyuan, as well as the residences of key executives, in a sting operation earlier in the day.
The seven executives, including its chairman, surnamed Chin, were later sent to the Taipei District Prosecutors’ Office for further questioning.
The company was suspected of promoting two fraudulent instruments — a mutual fund and a savings account — with the latter inviting potential investors to deposit between NT$500,000 and NT$5.5 million on the promise of paying out a high monthly interest of NT$12,000 to NT$132,000.
NT dollar retreats
The New Taiwan dollar fell NT$0.05 to close at NT$29.06 against the US dollar after the central bank intervened in late trading to boost the greenback, dealers said. Turnover totaled US$1.436 billion.