Taiwanese banks, insurers and securities firms reduced their exposures to the Ukrainian and Russian markets by a total of NT$143.4 billion (US$4.9 billion) as of the end of last month, down by NT$74.5 billion from two months earlier, the Financial Supervisory Commission said yesterday.
The reduction in exposures was mainly due to the decline in the valuation of Russian bonds, as market prices dipped amid rising default risks since the outbreak of the war in Ukraine, the commission said.
Taiwanese life insurers had invested NT$104.6 billion in Russia, down 25 percent from NT$138.2 billion two months earlier, while no investment was made in Ukraine, commission data showed.
The local securities and futures industry has no direct exposure to the two countries, but individuals held about NT$26.6 billion in Russia-based exposures through investments in local and overseas mutual funds that have assets in Russia, the data showed.
That was a reduction of 52 percent from two months ago, the data showed.
Individual investments in mutual funds with assets in Ukraine totaled about NT$6.9 billion, plunging 63 percent from two months earlier, the data showed.
Conversely, local banks’ exposure to Russia rose 3 percent to NT$5.28 billion, which includes NT$51 million in lending and NT$5.23 billion in direct investments, compared with two months ago, the commission said.
The increases in Russian investment, denominated in US currency, are mostly due to the appreciation of the US dollar against the New Taiwan dollar, the commission said.
Eight local life insurers registered a combined credit loss of NT$14.23 billion, stemming from holdings of Russian bonds as of the end of last month, the data showed.
Shin Kong Life Insurance Co (新光人壽) had the most significant losses amongst local peers, totaling NT$3.16 billion. Nan Shan Life Insurance Co (南山人壽) followed with a loss of NT$3.02 billion. Cathay Life Insurance Co (國泰人壽) registered a loss of NT$2.6 billion.
SEMICONDUCTORS: The firm has already completed one fab, which is to begin mass producing 2-nanomater chips next year, while two others are under construction Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, plans to begin construction of its fourth and fifth wafer fabs in Kaohsiung next year, targeting the development of high-end processes. The two facilities — P4 and P5 — are part of TSMC’s production expansion program, which aims to build five fabs in Kaohsiung. TSMC facility division vice president Arthur Chuang (莊子壽) on Thursday said that the five facilities are expected to create 8,000 jobs. To respond to the fast-changing global semiconductor industry and escalating international competition, TSMC said it has to keep growing by expanding its production footprints. The P4 and P5
DOWNFALL: The Singapore-based oil magnate Lim Oon Kuin was accused of hiding US$800 million in losses and leaving 20 banks with substantial liabilities Former tycoon Lim Oon Kuin (林恩強) has been declared bankrupt in Singapore, following the collapse of his oil trading empire. The name of the founder of Hin Leong Trading Pte Ltd (興隆貿易) and his children Lim Huey Ching (林慧清) and Lim Chee Meng (林志朋) were listed as having been issued a bankruptcy order on Dec. 19, the government gazette showed. The younger Lims were directors at the company. Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte Ltd are the trustees, according to the gazette. At its peak, Hin Leong traded a range of oil products, made lubricants and operated loading
The growing popularity of Chinese sport utility vehicles and pickup trucks has shaken up Mexico’s luxury car market, hitting sales of traditionally dominant brands such as Mercedes-Benz and BMW. Mexicans are increasingly switching from traditionally dominant sedans to Chinese vehicles due to a combination of comfort, technology and price, industry experts say. It is no small feat in a country home to factories of foreign brands such as Audi and BMW, and where until a few years ago imported Chinese cars were stigmatized, as in other parts of the world. The high-end segment of the market registered a sales drop
Citigroup Inc and Bank of America Corp said they are leaving a global climate-banking group, becoming the latest Wall Street lenders to exit the coalition in the past month. In a statement, Citigroup said while it remains committed to achieving net zero emissions, it is exiting the Net-Zero Banking Alliance (NZBA). Bank of America said separately on Tuesday that it is also leaving NZBA, adding that it would continue to work with clients on reducing greenhouse gas emissions. The banks’ departure from NZBA follows Goldman Sachs Group Inc and Wells Fargo & Co. The largest US financial institutions are under increasing pressure
RSS