Taiwan's Shin Kong to raise property investment
TAIPEI, April 30 (Reuters) - The insurance unit of Shin Kong (2888.TW), Taiwan's No. 2 life insurer, said on Wednesday it planned to raise the ratio of its portfolio in local real estate, on hopes closer Taiwan ties with China will boost prices.
Shin Kong Life will invest about 10 percent of its portfolio this year in the Taiwan property market, up from 8.3 percent now, President Pan Po-tseng said at an event.
Shin Kong Life, which now has T$84 billion ($2.76 billion) in real estate holdings, is bullish on office buildings and luxury homes, Pan said.
He added Shin Kong has several projects under construction in Taipei.
Taiwan's president-elect Ma Ying-jeou favours closer business relations with Beijing, sending the construction sub-index .TCOI up 54 percent this year as many hope an influx of Chinese tourists and investment will boost the local economy.
The tourism sub-index .THOI is also up a lofty 60 percent this year, while the broader market climbed only 4.9 percent during the same period.
On Wednesday, shares of Shin Kong rose 0.36 percent, roughly in line with the main index's 0.32 percent gain. (US$1=T$30.4) (Reporting by Argin Chang; Writing by Faith Hung; Editing by Keiron Henderson)
