TAIEX closes down slightly; banking shares

Most financial shares rose due to a report by China Times that China will open 20 percent of its credit card market to Taiwan.

“Foreign banks current account for 32 percent of China's credit card business. We'd like to lower it to 10 percent, and open 20 percent to Taiwan card issuers,” the paper reported, quoting Liu Mingkang, chairman of the China Banking Regulatory Commission.

One analyst from a local U.S.-based asset management firm, however, disagreed with the figures Liu cited.

“Foreign banks cannot issue credit cards alone in China. They have to partner with Chinese banks first,” he was quoted by the United Evening News as saying. “I don't know where the 32 percent comes from.”

He said while Taiwan does hold an edge in issuing credit cards, the report remains largely speculative.

“Everything, including the percentage of market to be reserved for the Taiwanese, must wait till a formal economic cooperation framework agreement is signed,” he said.

Chinatrust Financial Holding Co., Taiwan's biggest credit-card issuer, gained 4.6 percent to NT$21.60, the highest since June 6, after the report.

In other stocks, China Motor Corp. climbed by its daily limit 6.7 percent to NT$19.80, the highest since July 14, 2008, after the Taiwanese carmaker said it may raise its annual sales estimate from the earlier prediction of 32,000 units as demand increased.

Efun Technology Co. rose 6.9 percent to NT$39.45, the highest since June 11, after the company said it started test production of thin-film solar panels and plans to mass produce later this month.

Opto Tech Corp., a light-emitting diode maker, advanced 1.8 percent to NT$28.50, the highest since June 12, after Economic Daily News reported the company received orders to make light-emitting diode crystals for Hon Hai Precision Industry Co.

Yulon Nissan Motor Co. surged 6.3 percent to NT$67.90, the highest since August 7, 2007, after the joint-venture between Japan's Nissan Motor Co. and Yulon Motor Co. said its June revenue is boosted by sales of Teana and Rogue models.

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