The Chinese private banking industry is hard to penetrate. However, wealth managers that are aware of the local make-up of the HNW market will find it to be highly profitable. Chinese HNW investors have mainly sourced their wealth through a mixture of entrepreneurship and earned income. While investors value professional advice, they are reluctant to relinquish control and tend to prefer advisory mandates. The average portfolio is heavily invested into cash and near cash-products and property, and this is not expected to change. Chinese HNW clients also show moderate to strong demand for auxiliary services, suggesting that a multi-service proposition is critical in China.
- HNW entrepreneurs will prove to be lucrative, accounting for 33.6% of the local HNW population.
- Expats also represent a noteworthy proportion of the Chinese resident HNW population, accounting for 14.1%.
- HNW investors allocate an above average and growing proportion of their wealth into cash and near-cash products.
- HNW demand is particularly pronounced for advisory asset management, but technological advancements and investors' desire to manage simple investments themselves is driving demand for execution-only asset management.
- Already high demand for margin lending is forecast to increase even further, and wealth managers should ensure clients understand the risks associated with a leveraged investment strategy.
Verdict Financials "Wealth in China: HNW Investors" analyzes the investing preferences and portfolio allocation of Chinese HNW investors. The report is based on our proprietary Global Wealth Managers Survey.
Specifically the report:
- Profiles the average Chinese HNW investor in terms of their demographics and analyzes the expat opportunity in China.
- Analyzes which wealth management mandates are preferred among Chinese HNW investors and how demand will develop going forward.
- Examines the allocation of Chinese HNW investors' portfolios into different asset classes and how the allocation is expected to develop in the future.
- Analyzes product and service demand among Chinese HNW investors.
Reasons To Buy
- Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.
- Give your marketing strategies the edge required and capture new clients using insights from our data on HNW investors' drivers for seeking investment advice vs. self-directing.
- Tailor your investment product portfolio to match current and future demand for different asset classes among HNW individuals.
- Develop your service proposition to match the product and service demand expressed by Chinese HNW investors and react proactively to the forecasted change in demand.