Ruby Ying, The China Post
Benny Hu, former president of the China Development Industrial Bank (CDIB) and current president of CDIB’s asset management company, is reportedly considering joining the Lin Yuan Group as the president of the group’s to-be-established financial holding company. During the same conference, Tsai Hung-tu, the Lin Yuan Group’s heavyweight decision maker, also refused to confirm the rumor of Hu joining the group. Tsai is currently the chairman of Cathay Life Insurance, the flagship company of Lin Yuan.
Since the Financial Holding Company Law was passed in the Legislative Yuan on June 27, at least seven out of Taiwan’s major business groups have revealed plans to establish financial holding companies. Hu, given his professionalism and vast experience in the banking sector, is eyed by these groups as the ideal candidate to run their new ventures. According to Tsai, Cathay Life Insurance has mapped out a two-phase plan to form a financial holding company. Though the preparatory work for transforming Cathay Life Insurance into a financial holding company will take at least one year, the company is expected to file its application with the authorities at the year-end. On the other hand, Tsai is considering organizing a financial holding company by integrating the banking, insurance, and securities businesses of the Yuan Lin Group. “We have entrusted professional consultants and investment banks to evaluate the pros and cons of each plan and will make the final decision soon,” Tsai said. Aspiring to provide top-notch financial services to the world’s Chinese community, Tsai remarked that after forming a financial holding company, Cathay will cooperate with multinational corporations, whether in the form of strategic partnerships, joint ventures, or stock transfers, in order to explore the potential of regional and global markets by capitalizing on foreign enterprises’ business strategies and management skills. In preparation for launching business in mainland China, Cathay Life Insurance set up an office in Beijing in February. “The 120 well-trained Cathay insurance agents are ready to serve mainland consumers as soon as the authorities allow Taiwan insurers to engage in business in the mainland,” noted Tsai.