Chinatrust mulls buying financial companies in Asia

Part of the lender’s M&A scheme is to set up subsidiaries in China or buy stakes in local banks.

Chinatrust Financial Holding Co. reportedly plans to acquire financial institutions in Taiwan, China and Southeast Asia, focusing on such sectors as banking, securities, leasing, and trust & investment.

Y. K. Wu, president of the company, indicated that based on international standard a bank`s return-on-equity (ROE) should reach 15%-20%, a range Chinatrust has to reach by enhancing strength through mergers and acquisitions.

Wu disclosed that Chinatrust may set up subsidiaries in China or purchase stakes in local banks. Last year Chinatrust was approved to raise capital by floating 2.5 billion more shares, a project yet to be realized but may be carried out soon depending on planned expansions.

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