Mortgage rates remain low
The home mortgage rates of five major state-run banks last month remained at 1.359 percent, the second-lowest level on record, for the fourth consecutive month due to fierce competition among banks, while new home loans fell to NT$55.346 billion (US$1.91 billion), according to data released yesterday by the central bank. The average interest rate for new loans offered by Bank of Taiwan (臺灣銀行), First Commercial Bank (第一銀行), Hua Nan Commercial Bank (華南銀行), Land Bank of Taiwan (土地銀行) and Taiwan Cooperative Bank (合作金庫銀行) last month fell to 1.237 percent, down from 1.272 percent in August, the central bank said.
Tatung shares rise 10%
Tatung Co (大同) shares yesterday rose by 10 percent, the maximum daily limit, to NT$21.35 after the company held an extraordinary shareholders’ meeting the previous day to elect a new board of directors. The Taiwan Stock Exchange announced that it would resume normal trading of the company’s shares from today. On Wednesday, activist investors led by Shanyuan Group (三圓建設) chairman Wang Kuang-hsiang (王光祥) won seven seats on Tatung’s nine-member board, ending the founding Lin (林) family’s 102-year control of the company.
Feng Hsin reports Q3 profit
Feng Hsin Steel Co (豐興鋼鐵) yesterday reported third-quarter net profit increased 19 percent quarterly and 111 percent annually to NT$764 million, or earnings per share (EPS) of NT$1.31, the highest this year. Gross margin also improved to 16 percent last quarter, up from 14 percent in the previous quarter and 9 percent a year earlier, the company said. The Taichung-based company said that it is positive on steel demand for this quarter on the back of government infrastructure programs and the return of overseas Taiwanese businesses. In the first three quarters, Feng Hsin reported cumulative EPS of NT$3.29, compared with NT$2.55 a year earlier.
Hon Hai sells Alibaba shares
Hon Hai Precision Industry Co (鴻海精密) subsidiary Foxconn Ventures Holding Co (富士康創投控股) has sold off its remaining shares in Alibaba Group Holding Ltd (阿里巴巴) to book US$130.08 million in investment gains, Hon Hai said yesterday. Foxconn Ventures sold 630,000 American depositary receipts of Alibaba at US$310.68 each, for a total transaction value of US$195.73 million, Hon Hai said in a regulatory filing. About US$68 million would be transferred into unappropriated retained earnings for last year, as required by International Financial Reporting Standard 9 guidelines, while US$62.11 million would be recognized as a valuation gain this year, it said.
Pan German plans showroom
Pan German Universal Motors Ltd’s (汎德永業汽車) board of directors has approved plans to build a four-floor multifunction showroom for Porsche vehicles in Taichung, and to expand its vehicle repair and maintenance services in the region, it said yesterday. The NT$886 million project is to open in the third quarter of 2022, the company said. The new investment reflects its optimism about Porsche’s sales prospects, as well as the potential for imported vehicles in Taichung, said Pan German, which distributes BMW, Porsche and Mini vehicles in Taiwan.
Cash-strapped developer China Evergrande Group (恆大集團) has begun repaying investors in its wealth management products with real estate, said Hengda Real Estate Group Co Ltd (恆大地產), its main unit. Evergrande, with more than US$300 billion in liabilities, is in the throes of a liquidity crisis that has left it racing to raise funds to pay its many lenders and suppliers. It has a bond interest payment of US$83.5 million due on Thursday. The company said on WeChat on Saturday that investors interested in redeeming wealth management products for physical assets should contact their investment consultants or visit local offices. Financial news outlet Caixin on
WORK SUSPENDED: A Taiwanese maker of golf club heads said that it expects the situation to normalize next quarter, thanks to rising vaccination rates in Vietnam Several Taiwanese manufacturers in Vietnam have been struggling with production problems over the past few weeks, as the country’s south remains under a COVID-19 lockdown. Pou Chen Corp (寶成工業), an original design manufacturer for international footwear brands, said that production at its factory in Ho Chi Minh City has ground to a halt, so it expects a significant drop in revenue at that factory from July to last month. If the COVID-19 outbreak in southern Vietnam subsides in the fourth quarter of this year and employees are allowed to return to work, they might be able to put in some overtime,
‘CORE VALUES’: The contract chipmaker did not specify why the employees were dismissed, but media reports said they had leaked information about customer orders Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has fired seven of its employees for violating the company’s “core values,” the world’s largest contract chipmaker said yesterday. While the company did not disclose exactly why it fired the seven employees, local media reports earlier in the day said that the employees had leaked confidential information about customer orders. In a statement, the company said that it fired the seven at once, adding that it released an internal notice last week to inform the entire company of the move ahead of the four-day Mid-Autumn Festival holilday, which ended on Tuesday. TSMC said it fired the seven
Medigen Vaccine Biologics Corp’s (高端疫苗) board of directors yesterday approved a proposal to conduct a phase 3 clinical trial of its COVID-19 vaccine in Europe, it said yesterday. The final stage of human tests, if approved by the European Medicines Agency (EMA), would mark a big milestone in the COVID-19 vaccine development of Medigen, which has so far completed phase 1 and 2 clinical trials in Taiwan and is conducting a small phase 3 clinical trial in Paraguay. Medigen in July consulted the EMA about conducting clinicial trials of its vaccine and it received a “positive response” from the agency, the company