09.14.2001
Taishin to set up Financial Holding Company

• Development: Taishin International Bank finally decided to transform into a Financial Holding Company. The bank plans to hold a shareholders’ meeting in late Oct. to pass the resolution. Taishin Bills Finance (unlisted), Shin Kong Investment Trust (unlisted) and Taishin Bank will be considered for subsidiaries under the FHC. Total capitalization is more than NT$30bn.

• Analysis: As the Shin Kong Group is a large conglomerate in Taiwan, covering insurance and securities businesses, this will help Taishin Bank expand market share. FHC will be more complete if it absorbs Shin Kong Life Insurance (2818.TT) and Taiwan Securities (6010.TT).

• Primasia View: We believe a FHC structure will benefit the bank in the long term. We recommend Long Term Buy.