Taiwanese Wealth Market 2006

• Based on data collected directly from governmental sources such as central banks, mutual fund associations and stock exchanges.
• Insight into the respective financial services market was obtained through in-depth interviews with the main wealth managers and private bankers
• Sizing and forecasting of high net worth individuals were generated by Datamonitor's proprietary Global Wealth Model

• Find out why Taiwan is attractive and what its advantages over other emerging economies.
• Find out how large Taiwan is now and how large it will be in 2010
• Find out how big the opportunities for growth will be going forward

CHAPTER 1 INTRODUCTION

What is this report about?

Who is the target reader?

How to use this report

CHAPTER 2 MACROECONOMIC OVERVIEW

Market comparisons

The four economies

Sectoral breakdown

Size and growth

GDP per capita

Inflation and consumer prices

Population and unemployment

CHAPTER 3 THE TAIWANESE WEALTH MARKET

Market background

Savings and investments

Size of the affluent market

Financial services and the regulatory environment

June 2005 - Taiwan limits wealth management fees to 'wealthy'

February 2006 - The resource drain

May 2006 - Taiwanese regulator amends wealth management regulations

Competitive dynamics

Competitive developments in 2006

October 2005 - BNP Paribas expands into Taiwan

October 2005 - ABN AMRO opens in Taiwan

December 2005 - Citigroup launches private banking in Taiwan

October 2006 - First Sino Bank applying for renminbi license

Future focus

The affluent outlook

Mass affluent segment

High net worth segment

CHAPTER 4 APPENDIX

Data

Definitions

AAGR

Affluent

CAGR

Gini index

Liquid assets

Liquid asset bands

Research methodology

The Global Wealth Model

The UK sub model

Asia-Pacific sub model

Forecasting methodology

Datamonitor's wealth numbers compared with others' numbers

Bespoke Wealth Market Sizing

Further reading

Datamonitor Asia-Pacific Wealth Reports

Datamonitor Asia-Pacific Insight Reports

Datamonitor Global Wealth Service: Competitor Tracking

Asia-Pacific contacts

List of Tables

Table 1: Sectoral breakdown of GDP in Malaysia, Thailand, South Korea and Taiwan, 2005

Table 2: Indexed GDP growth, 1999=100

Table 3: GDP per capita, GDP in USDbn and average GDP growth

Table 4: Consumer Price Indices of Malaysia, Thailand, South Korea and Taiwan, 2000-2005

Table 5: Rate of unemployment in Malaysia, Thailand, South Korea and Taiwan, 2000-2005

Table 6: Population breakdown by age in Malaysia, Thailand, South Korea and Taiwan, 2005

Table 7: Taiwanese retail savings and investments, 2000-2005

Table 8: Onshore liquid assets owned by affluent individuals in Taiwan, 2005-2010

Table 9: Number of affluent individuals in Taiwan, 2001-2005 36

Table 10: Onshore liquid wealth owned by individuals in Taiwan, 2006-2010

Table 11: Number of affluent individuals in Taiwan, 2006-2010

Table 12: Wealth markets that have been modelled using the Global Wealth Model

List of Figures

Figure 1: Report structure and research model

Figure 2: A sectoral breakdown of the four economies reveals varying reliance on the services sector, with Taiwan's economy being the most reliant

Figure 3: Taiwan's economy grew at the slowest overall rate between 2001 and 2005

Figure 4: South Korea's economy is by far the largest of the four and saw good average annual growth over the 2001-2005 period

Figure 5: All four economies have seen low inflation of consumer prices over the 2000-2005 period

Figure 6: Of the four countries Malaysia has the youngest population profile

Figure 7: All four countries have low unemployment on a global scale, with Thailand's rate the lowest in 2005

Figure 8: Growth in retail savings and investments has outpaced GDP growth by a considerable margin in Taiwan over the 2000-2005 period

Figure 9: The liquid wealth of Taiwanese affluent individuals grew by more than 60% over the 2000-2005 period

Figure 10: Those with more than USD10m in liquid assets have grown rapidly in number over the 2000-2005

Figure 11: High net worth individuals with more than USD500,000 in liquid assets will own 32% of all retail liquid assets in 2010

Figure 12: The number of individuals with between USD60,000 and USD500,000 in investible assets will grow by more than 39% between 2005 and 2010

Figure 13: The overall liquid wealth of affluent individuals in Taiwan will grow at a rate of 8.1% compounded annually over the 2005-2010 period, not a great deal fasted than overall retail liquid wealth

Figure 14: High net worth individuals in Taiwan will own USD222bn in liquid assets at the end of 2010