Volume of HNWIs in China Increased Significantly with Annual 8.96% Rate During Last Five Years, States GlobalData05 Jul 2012 • by Natalie Aster
China’s GDP recorded strong annual growth of 9.5% in 2011, growth that is expected to continue over the forecast period. This makes the country an attractive investment location for wealth management firms. Moreover, China has the main components that comprise a high-growth wealth management market, including a very large and young affluent customer base, an improving wealth situation among the global Chinese population, a governmental desire to more tightly regulate the country’s financial services, and an increasing share of organized companies as compared to the unorganized workforce.
The new report "Emerging Opportunities in the Chinese Wealth Management Industry: Market Size, Strategies, Products and Competitive Landscape" by GlobalData states that the volume of HNWIs in China increased at a compound annual growth rate (CAGR) of 8.96% during the review period (2007–2011), while the total wealth of China’s HNWIs recorded a CAGR of 9.77% during the review period.
Emerging Opportunities in the Chinese Wealth Management Industry: Market Size, Strategies, Products and Competitive Landscape
Published: June, 2012
Price: US$ 1.950,00
There are key highlights of the title:
- China currently has the second-largest number of high-net-worth-individuals (HNWIs) in the Asia-Pacific region, after Japan. Over the forecast period (2012–2016), the wealth and volume of HNWIs in the country is expected to continue to increase strongly, with the number of Chinese HNWIs projected to reach 2,418,710 individuals by 2016.
- The popularity of alternative asset holdings has increased dramatically over the past two years, growth that is expected to continue into the forecast period and help the share of alternatives within total HNWI assets to increase from 4.7% in 2011 to 8.5% in 2016.
- China’s HNWIs provide strong growth prospects for the country’s wealth management firms and private banks, as there is currently a relatively low penetration of financial services in China.
- The Chinese wealth management market is currently highly fragmented as a result of it being in an early stage of development. Moreover, the country’s organized service providers, such as commercial banks and wealth management companies, have thus far predominantly focused on China’s urban population, neglecting a potentially lucrative customer base of HNWIs that reside in rural areas.
- Commercial banks, private wealth management companies and asset management companies are adopting various marketing strategies in order to become successful in the Chinese wealth management industry.
More information can be found in the report “Emerging Opportunities in the Chinese Wealth Management Industry: Market Size, Strategies, Products and Competitive Landscape” by GlobalData.
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