China HNWI Market to Amount to USD 7.5 Trillion by 2015, Forecasts Timetric19 Oct 2012 • by Natalie Aster
Despite the global financial uncertainty, the number of high net worth individuals (HNWIs) in China has risen sharply by 41% in per year during last four years. Although HNWIs make up only 0.4% of China’s population, this is equivalent to over 4 million individuals. Furthermore, the number of HNWIs in China is expected to double by 2015, which will change’s China’s position as the third-largest global wealth market in 2011 to the second-largest global wealth market in 2015.
By the end of 2011, there was an estimated US$4.3 trillion of investable assets in China. It is estimated that HNWI wealth will grow at a compound annual growth rate (CAGR) of 14.7% over the forecast period (2011–2015), to reach US$7.5 trillion by 2015. This excludes important contributory factors such as private business assets, real estate investments, art and other luxury investments or offshore funds.
There are marked demographic differences between Chinese HNWIs and their foreign counterparts. For example, Chinese HNWIs are younger, as the average HNWI in China is under 40 years old. The majority of Chinese HNWIs are self-made and come from manufacturing backgrounds. Property and technology also generated Chinese HNWI wealth. However, by 2015 the economic structure will have changed and 25% of Chinese HNWIs will have generated their wealth from technology and software, and only 13% will have generated their wealth from manufacturing. A half of China’s HNWIs is now more aware of inheritance planning, and this area of wealth management is expected to expand.
The new report "The Chinese HNWI Market in 2012" by Timetric states that foreign banks that are attempting to promote their products and gain potential investors in China have experienced difficulty in attracting consumer confidence. Their original advantages of reputation and experience were damaged after several foreign institutions were profiled in the national media for losing the money of high-profile Chinese customers. Derivatives-related trade carried out by Citic Pacific cost the firm US$1.9 billion in 2008, which affected Larry Yung, China’s richest man. In 2005, Yang Huiyan, China’s second-richest female lost a vast amount in similar circumstances. The ongoing losses by non-Chinese banking institutions are continuing to decrease consumer confidence in foreign private banking services.
The Chinese HNWI Market in 2012
Published: August, 2012
Price: US$ 3.800,00
- This research report analyses the changing HNWI demographic in mainland China
- It assesses the impact the capital markets correction in 2008 had on client expectations
- It considers the private banking services that influence a client's choice in provider
- It details the best way to move forward and capitalise on this valuable market
More information can be found in the report “The Chinese HNWI Market in 2012” by Timetric.
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