Chunghwa Post cancels China investment plan


CNA

TAIPEI–Taiwan’s official postal service Chunghwa Post Co. (���ضl�F) has decided not to go ahead with a plan to invest in the securities market in China, the company’s chairman Philip Ong (�Τ��R) said Monday, citing public concerns and investment risks.

Chunghwa Post had proposed in November to revise the existing Management Measures for Postal Savings Investing Bonds and Bills, to allow the purchase of Chinese securities as part of its efforts to manage its funds efficiently.

However, some Chunghwa customers expressed concerns about the risks of investing in mainland China and they threatened to withdraw their savings from Chunghwa Post.

At the Legislature on Monday, Ong was taken to task on the issue by opposition Democratic Progressive Party lawmaker Lee Kun-tse (�����A).

Lee said other state-run banks have already invested over NT$1 trillion (US$31.67 billion) in China, and it is not best for Chunghwa Post to hastily invest in that market.

Chunghwa Post is a state-run enterprise that holds the savings of people from all over Taiwan, Lee noted.

In response, Ong said the investment plan has been withdrawn after taking into consideration public opinion and the risks involved.

Chunghwa Post’s savings accounts now hold a net NT$5 trillion, according to the company.

In its proposal to revise its management of savings, it had said that its investments in China would be limited to 0.6 times the net savings in the previous year.

This meant that at most, Chunghwa Post would have allocated NT$60 billion for investment in China.

Currently, some its savings are invested in countries such as the United States, Germany, Britain and Canada, Ong said.