Taiwan Business News Highlights

Strategic Insights -

Taiwan's financial markets and top companies made headlines yesterday, with investors eagerly watching the government's handling of state-controlled banks and the nation's banking regulator's decision to hand over an insider trading case to prosecutors. The nation's largest semiconductor maker, Powerchip, continued its growth momentum, while smaller companies like Bowa Bank and Ruten's online auction portal made significant announcements.

Key Takeaways:

  • The head of the Cabinet-level Financial Supervisory Commission (FSC) declared the decisions made by the board of directors of Chang Hwa Bank (CHB) concerning share-swapping to be invalid, sparking controversy over the bank's management.
  • Intel Corp. predicted fourth-quarter sales would exceed expectations due to market share gains and reduced concerns over Microsoft Corp.'s new operating system.
  • Hundreds of people lined up outside Hong Kong banks to buy shares in Industrial & Commercial Bank of China, the nation's largest lender, which opened the retail portion of its initial public offering.
  • Powerchip Semiconductor Corp. reported an all-time high third-quarter net income and expected growth momentum to extend into the current quarter.
  • Taishin Financial Holding Co.'s plan to merge with state-controlled Chang Hwa Bank was put on hold after lawmakers demanded an investigation into Chang Hwa Bank's alleged breach of regulations.
  • Kuro, Taiwan's largest online music portal, is considering a merger with smaller rival Yahoo-Kimo Music.
  • Shares of Bowa Bank surged due to news that the bank's recapitalization plan had attracted three foreign buyers.
  • Ruten, the nation's second-largest online auction portal, surpassed 1 million listings, exceeding its scheduled growth rate.
  • The nation's financial regulator decided to hand over the alleged insider trading case involving Standard Chartered Bank's acquisition of Hsinchu International Bank to prosecutors for further investigation.
  • Italian designer clothing giant Versace plans to focus on the Chinese market with an investment of 10 million euros (US$12.5 million) next year.

Statistics:

  • 10 million euros: The amount of euros that Italian designer clothing giant Versace plans to invest in China next year.
  • US$12.5 million: The dollar value equivalent of Versace's planned investment in China.
  • 1 million listings: The number of listings that Ruten's online auction portal surpassed, exceeding its scheduled growth rate.
  • 10 years: The expected focus period for Versace to grow in the Chinese market.
  • Several Controversies: Number of controversies over improper dealing by state-controlled Chang Hwa Bank.

Sources:

  • CHINA POST: "Chen's constitution for '2nd republic' not popular" - No date
  • TAIPEI TIMES: "Powerchip Semiconductor Corp says third-quarter net income set an all-time high" - No date
  • ASIA PULSE 17-10 1618: "Taipei, Oct 17 Asia Pulse - Highlights of today's newspapers" - No date