■ SinoPac posts profit
SinoPac Holdings Co (建華金控), Taiwan's 10th-largest financial holding firm, announced unaudited profit of NT$2.97 billion (US$88 million) in the year's first half.
The profit is 51 percent of SinoPac's full-year earnings forecast of NT$5.79 billion, the company said in a statement. In 2003, SinoPac reported an audited first-half profit of NT$1.7 billion.
SinoPac said last November it hired Goldman Sachs Group Inc as a financial adviser to find merger partners.
■ Quanta borrows for new plant
Quanta Display Inc (廣輝電子), a flat-panel display maker controlled by Taiwan's biggest notebook computer producer, borrowed NT$30 billion (US$890 million) to set up a new factory.
Chinatrust Financial Holding Co (中信金控), Hua Nan Financial Holdings Co (華南金控) and 24 other banks agreed today to provide the loan, the company said in a statement.
Taiwanese flat-panel makers such as AU Optronics Corp (友達光電) and Taoyuan-based Quanta Display are expanding to meet demand. Global sales of liquid crystal displays are expected to rise 73 percent this year because of higher-than-expected demand for flat-screen televisions, researcher DisplaySearch said.
■ Via's share plan nixed
Taiwan's Financial Supervisory Commission rejected Via Techno-logies Inc's (威盛電子) plan to issue 81.9 million shares as bonus stock for employees and shareholder dividends, a Chinese-language newspaper said, citing unidentified sources at the commission.
Via Technologies proposed to grant 19 million new shares to its workers, which the commission called a disproportionately large number compared with the 62.9 million earmarked as dividends for shareholders, the report said.
The company said it will submit supporting documents to the commission to explain its employee bonus and shareholder dividend policies, the report said.
Via Technologies, Taiwan's biggest maker of chipsets for personal computers, had a loss last year of NT$1.7 billion (US$50 million), or NT$1.3 a share.
■ Citibank taps China manager
Citibank yesterday announced the appointment of Benny Chen (陳邦仁) as country business manager responsible for the lender's global consumer business in China, it said in a statement.
The change will take effect from August 1, after Richard Stanley's move to Singapore as head of global corporate and investment banking for ASEAN.
Chen is currently a senior executive vice president and retail banking group general manager at Chinatrust Commercial Bank (中國信託銀行).
■ Marvell resumes TSMC orders
Marvell Technology Group Ltd has made new orders with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Singapore's Chartered Semiconductor Manufacturing Ltd (特許), a Chinese-language newspaper said, citing an unidentified overseas investor source.
Bermuda-based Marvell switched to TSMC and Chartered from China's Semiconductor Manufacturing International Corp (中芯國際集成電路) because it wasn't satisfied with the Chinese company's production quality, the Taipei-based paper said.
■ NT dollar down
The New Taiwan dollar yesterday traded lower against its US counterpart, declining NT$0.025 to close at NT$33.724 on the Taipei foreign exchange market. Turnover was US$460 million.
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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