Fitch: New capital helps Shin Kong Financial

Fitch Ratings said that Shin Kong Financial Holding Co. Ltd.'s capital enhancement plans to raise new capital of up to NT$18 billion via new share issuance and release additional capital of NT$4.7 billion through disposal of its wholly-owned securities firm, Shin Kong Securities, is a positive move to support the group through the ongoing severe economic downturn.

Shin Kong is committed to restore its largest subsidiary, Shin Kong Life Insurance Co. Ltd.'s weakened capital position and plans to inject the acquired capital into the company, Fitch said.

The agency said the capital injection will provide much needed capital buffer for Shin Kong Life to weather the difficult economic conditions experienced worldwide.

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