02.09.2001
Chung Hsing moving into investment-trust business

• Chung Hsing Bills Finance Co. (2814 'Xing Piao') is taking steps to transform into a financial holding company. The company will follow a process similar to that adopted by the International Bills Finance Co. (2813 'Guo Piao'), and will direct new investment through its subsidiary Chung Hsing Securities Corporation.

• The company plans to establish its first investment trust fund, with main investments in IC design and telecommunication start-ups. Planned asset value is NT$1b, and Chung Hsing wil invest NT$100m as lead investor, with the remaining amount to be invested by securities companies, banks and high tech companies.

• Chung Hsing also plans to open an investment trust company with foreign asset management companies sitting on the board. International fund houses, such as Schroders (U.K.), have increasingly shown interest in local investment trust companies, and we believe this will benefit Chung Hsing and other Taiwan banks.

WilliamFong@Primasia.com +886-[0]2-2547-8864