SEOUL, KOREA - The stock of Yuanta Securities hit a daily upper limit on the news that its Taiwanese main office would invest up to US$300 million while increasing dividend payouts. On November 3, Yuanta Securities stock was closed at 3,510 won, renewing the 52-week high record. Earlier on October 31, Yuanta Securities chairman Ming Hong Ho said in an interview in Taipei, "We aim to put Yuanta Securities Korea within the rank of top-five securities firms and will invest $200 to 300 million in the future."

 

He also promised that the dividend payout ratio, or the percentage of earnings paid to shareholders in dividends, of its Korean unit would be raised to the 60-70 percent level to make it comparable to that in Taiwan.

 

Separately, Yuanta Securities issued on the same day a new fund available for public subscription for the first time in Korea. With this fund, individual investors will be able to invest in blue chip bonds issued in the mainland China. The fund will invest in corporate bonds whose ratings are over and above "AA." Investors may expect to earn extra returns if the yuan currency appreciates against the won. 

 

Article provided by The Korea Economic Daily