The China Post news staff
The Cabinet-level Financial Supervisory Commission (FSC) reaffirmed yesterday the rules prohibiting the Ruentex Financial Group from participating in a property development project to be undertaken by Nan Shan Life Insurance Co., one of its many affiliates.
Executives of Nan Shan Life gave a report to the FSC about its successful winning of the rights to develop the Second Exhibition Hall at the Taipei World Trade Center. They also expressed the hope that the Ruentex Group could take part in the costly development project in view of its massive financial resources which can make the venture more successful. However, FSC officials said that Ruentex already made the pledge of not getting involved with certain business ventures of Nan Shan Life when the group mounted a campaign to defeat other investors to take over the insurance firm from its original owner.
They said Nan Shan Life executives expressed their understanding about the promise made by Ruentex that none of the group’s affiliates will take part in the insurance company’s development projects or investment plans. The Ruentex Group is one of the major business and financial conglomerates in Taiwan with extensive operations in finance, textiles, real estate development, cement, construction, healthcare, and retail business. The group’s RT-Mart operates extensive wholesale store chains in both Taiwan and mainland China. There are three companies of the Ruentex Group traded on the stock market, including Ruentex Industries Co., Ruentex Development Co., and Ruentex Engineering & Construction Co. The group beat other bidders to acquire Nan Shan Life from the New York-based American International Group (AIG) which decided to sell the Taiwan insurance firm for cash fund. When granting its approval to the deal, the FSC set certain restricting conditions concerning Ruentex’s future business operations related to Nan Shan Life.