Yuanta Core Pacific Securities

Brokerage has been one of Yuanta's core businesses since its establishment in 1962. At the end of 2003, Yuanta had a brokerage market share of 8.61%, leading its competitors for the 9th consecutive year. Yuanta established 4 new branch offices in 2003, totaling 93 branch offices island wide; Yuanta provides a wide range of financial services through its diverse distribution channels and close to 2,000 brokerage professionals. Yuanta also offers margin trading. Its margin loans market share was 9.94% with short selling market share at 13.59%.

Yuanta announced the merger with Asia Securities at the beginning of 2004, and plans to finalize the merger by the end of 2004. The combined number of branch offices after the merger will top one hundred with brokerage market share close to 10%.

In order to better serve the foreign institutional investors, Yuanta greatly enhanced its trading platform's capabilities in 2003. Its FIX-enabled electronic trading system automatically checks with the Taiwan Securities Central Depository (TSCD) and routes orders to the exchanges, greatly reducing time to market and increasing accuracy. The system became operational at the end of 2003 and both Yuanta and its clients are reaping the benefit of much-enhanced efficiency every day. Thus far in 2004, Yuanta has contracted with global network providers GL Trade and Bloomberg aiming to connect seamlessly with clients around the world and enable them to take advantage of Yuanta's electronic trading capability. Yuanta will continue to expand its businesses from Southeastern Asia to Europe and America through its affiliate Kim Eng Holdings Limited, working towards the goal of becoming a globalized securities house.