China Development Financial (CDF) was established in 2001 following a share swap managed by China Development Industrial Bank (CDIB, the predecessor of CDIB Capital Group). Along with its key subsidiaries, CDIB Capital Group, KGI Bank and KGI Securities, CDF has enjoyed its leading position in the venture capital market and investment banking business in Taiwan.
CDIB Capital Group, formerly China Development Corporation and later China Development Industrial Bank, was the first private development-oriented financial institution in Taiwan. In its more than 50 years of history, CDIB Capital Group has concentrated on the principal investment with 30% market share and corporate banking business. CDIB Capital Group has long worked in close partnership with the Taiwanese government to support the nation's economic growth. It has not only made a significant contribution to the nation’s economic growth and industrial development, but has also played the role as a pioneer among local investment banks. Looking forward, CDIB Capital Group aims to become a specialist of asset management and venture capital investment in the Asia-Pacific region.
CDF made Cosmos Bank a subsidiary through a share swap on September 15, 2014, in order to stabilize earnings streams, generate cross-selling synergies, enhance capital utilization, provide comprehensive services to our securities clients, and enhance shareholders’ return on equity. CDF now provides a full range of financial services, spanning principal investment, securities, and commercial banking. Our principal investment business commands 30% of the market share, giving us a leading position in Taiwan’s market. In recent years, we have focused on fundraising and management of private equity funds. As regards the securities business, KGI Securities currently leads the market in brokerage and underwriting and we have expanded our footprint to Hong Kong, Thailand, Singapore and Indonesia. Furthermore, KGI Securities aims to expand the business arm in mainland China and become a leading Taiwanese securities firm in Asia once the signing of the “MOU of Cross-strait Financial Cooperation” in 2009 is finalized. For commercial Banking, KGI Bank has integrated the niche Cosmos Bank has in consumer banking businesses, together with CDIB Capital Group’s strengths in corporate banking and KGI Securities’' advantages in investment banking and retail brokerage to provide customers a full range of international financial services.
CDF looks to fully utilize its extensive network deployed across Asia while the philosophy of 'Taiwan First' still remains to the core value CDF carries as we always value Taiwan market at the top priority. Looking forward, CDF wishes to become a leading financial holding Corporation in serving Chinese clients around the world.
On June 20, 2001, at a shareholders' meeting convened by China Development Industrial Bank (CDIB), a 1-to-1 share swap issued by CDIB was approved by those presented. This approved resolution established the entity of China Development Financial (CDF). The approval of the competent authorities came later on November 28, 2001 and the legal establishment of CDF was formally enacted a month later on December 28, 2001 when CDF also launched its IPO on TWSE. CDF provides direct investment, corporate banking, global market and securities brokerage services and leads in direct investment in Taiwan.
CDIB Capital Group, formerly China Development Corporation and later China Development Industrial Bank, was established on May 14, 1959 and was the first privately-run financial institution to operate direct investment business in Taiwan. China Development Corporation was born of the joint efforts of the Economic Stabilization Committee of the Executive Yuan, the World Bank, and private capital. It was restructured to become an industrial bank in 1999. In its more than 50 years of existence, CDIB Capital Group has focused on the principal investment and corporate banking businesses, playing a crucial role in Taiwan's venture capital market. Since the board was restructured in 2004, various internal structural adjustments and reforms have been made and implemented, designed to fine-tune the CDIB Capital Group's asset quality, strengthen its financial structure, and increase its transparency. These improvements have all contributed to making investment reflect market value and to ensuring the quality of the bank's outstanding credit.
CDF has carried out the founding principles by recruiting the best-qualified professionals, utilizing extensive experience, know-how and teamwork to push the business forward. Moreover, CDF has further expanded its business area to direct investment, corporate banking, and global markets in order to enrich its operating coverage.
On May 1, 2015, CDIB Capital Group's corporate banking and financial market operations were transferred to KGI Bank. Upon completion of this transfer, CDIB Capital Group fully aims to focus on the venture capital and private equity fund businesses in Taiwan, mainland China, and the Asia-Pacific region, with a view to increasing fee revenue. CDIB Capital Group also proactively engages with the group's restructuring plan to gradually dispose of investment positions and enlarge the size of managed equity funds, with the aim of becoming a leading private equity fund manager in the Asia-Pacific region.
With its business transformation and associated change of name being approved by the Financial Supervisory Commission, R.O.C., China Development Industrial Bank has been officially renamed CDIB Capital Group upon the business transformation on March 15, 2017 to focus on the core business activities in fundraising and venture capital investment. CDF has tailored its business operation to provide a full range of integrated financial services through three major subsidiaries: KGI Bank, KGI Securities and CDIB Capital Group.
As one of the major subsidiaries, KGI Bank (formerly Cosmos Bank) began operations in 1992 and has focused on extending financial services to manufacturers, corporates and retail customers. CDF resolved to conduct a share swap with Cosmos Bank at a board meeting on February 10, 2014 and an extraordinary shareholders' meeting on April 8, 2014. Cosmos Bank became a 100%-owned subsidiary under CDF on September 15, 2014 and was renamed KGI Bank in January 2015. The merger was undertaken in order to strengthen operations and the synergies of financial products and services CDF offers, as well as to expand the business arm further into retail and commercial banking.
KGI Bank's operations including deposits/lending, wealth management, consumer banking, corporate banking, global markets, and foreign exchange transaction business. As a new member of CDF Group, KGI Bank will leverage the existing advantages of its financial businesses, utilize the abundant resources of CDF, and combine its strong corporate client relations with the market advantages of KGI Securities to aggressively develop more innovative, cutting-edge financial services. Also, to keep abreast of digital-era trends, KGI Bank has set up a digital finance department, integrated virtual and physical channels and introduced digital financial products. KGI Bank provides SMEs clients with more diversified financial services, including cross-border trading, trade finance, TMU services as well as the new e-commerce platform.
Supported by CDF's strong capital presence, KGI Bank is able to wield more resources with a view to implementing its two-pronged strategy of cross-selling and utilizing capital for achieving better profits. This dual strategy is designed to strengthen the bank's market competitiveness, expand the global business network, enhance the international profile, and ultimately win over more clients.
KGI Securities began its operations in 1988 and has been the leading brokerage house in Taiwan among peers. KGI Securities focuses on stock/future brokerage, stock/future proprietary trading, underwriting and futures introducing brokerage. Over the years, KGI Securities has conducted multiple M&A activities and branch expansions. In December 2009, it acquired Tai-shin Securities and became the second largest brokerage firm in Taiwan. KGI Securities was later acquired by CDF and became a 100%-owned subsidiary on January 18, 2013 through open-market purchases and share swap. Later on June 22, 2013, KGI Securities merged with CDF's subsidiary Grand Cathay Securities, with KGI Securities being the surviving entity. This business integration was completed to further strengthen the market share of KGI Securities in brokerage business as well as the investment banking, bond and innovative financial products business in Taiwan.
Going forward, KGI Securities plans to combine CDIB Capital Group's close ties with industries in Greater China as well as the leadership in venture capital and private equity investment along with CDF's abundant financial resources to continue its efforts to build the brokerage, bond, investment banking and innovative financial products businesses. This, ultimately, will forward its goal of becoming a standout, all-around brokerage firm in the Greater China region.
CDF aims to become a reliable partner for clients by providing venture capital investments, commercial banking, and securities services, and has set the ultimate goal towards becoming 'the most distinguished financial group among the world's Chinese-speaking population!”.