REPATRIATION: KGI Securities said an inflow of NT$483.7bn could generate NT$2.9bn in wealth management fees. Yuanta Securities named some banks that might benefit
Date: Jul 08, 2019
By: Chen Cheng-hui / Staff reporter
Wednesday’s passage of a special bill aimed at encouraging the repatriation of funds from abroad is expected to benefit the financial sector, in addition to boosting domestic investment and consumption, analysts said.
Based on research conducted by analysts at KGI Securities Investment Advisory Co (凱基投顧) and Yuanta Securities Investment Consulting Co (元大投顧), repatriated funds would boost wealth management business at banks, while the lower tax rates for such funds would accelerate the pace of money flows and form a substantial support for the stock market, based on US experience.
The bill would result in an average of about NT$483.7 billion (US$15.55 billion) in funds flowing into Taiwan, which is forecast to generate NT$2.9 billion in wealth management fee income per year and about 1 percent earnings contribution to all banks, KGI said.
The Ministry of Finance has estimated capital inflows of NT$130 billion to NT$890 billion a year after the new law takes effect later this year, KGI said. [FULL STORY]