Chunghwa Post Co. Ltd., the largest institutional investor in Taiwan’s stock market, has played a responsible role by overseeing the financial operations, environmental protection efforts and corporate management of companies in which it has invested, company chairman Ong Wen-chyi (翁文祺), said recently in Tokyo.
Speaking on “Asian Business Dialogue on Corporate Governance 2016” at the annual Asian Corporate Governance Association (ACGA) conference, which was held on Nov. 15-16, Ong discussed the role of institutional investors in enhancing corporate governance, by citing the example of Chunghwa Post Co.
The company has invested about NT$150 billion (US$4.71 billion) in the local bourse, holds a 1-6 percent stake in 30-40 companies and is among the top 10 to 20 largest shareholders in many of those, Ong said.
Chunghwa Post receives stock dividend payments of about NT$7 billion per annum, according to Ong.
Since the former government department was reorganized as a public corporation and renamed Chunghwa Post Co. Ltd. in 2003, the company has become better at managing its investments in the equity market, Ong said.
With its focus on corporate social responsibility, Chunghwa Post has changed its investment policy from choosing shares based on corporate profitability to selecting listed companies that perform well in the areas of environmental protection, public goods and financial operations, Ong continued.
According to Ong, about 98 percent of the companies in which Chunghwa Post holds a stake have fulfilled their corporate social responsibility, while also earning the firm an impressive rate of return on its stock market investments.
Source: Focus Taiwan News Channel