Assessing the attractiveness of key APAC wealth management markets

Assessing the attractiveness of key APAC wealth management markets published by Datamonitor in January, 2010. This report consists of 54 pages and the price starts from US $ 4495.

Introduction

Abstract

Introduction

As international private banks search out the most promising Asia Pacific markets for the future, this report examines the wealth management markets of Australia, Hong Kong, Singapore, India and China, to determine which is the single most attractive.

Scope of this research

• Provides a thorough and comprehensive analysis of the wealth management markets in Australia, Hong Kong, Singapore, India and China
• Primary research among domestic wealth managers provides insight into HNWs and the nature of competition
• Utilizes Datamonitor' s proprietary Wealth Management Opportunity Index to score the attractiveness of the markets

Research and analysis highlights

Overall, Datamonitor believes that China is the most attractive country market in the region for international private banks. While the macro business environment in China is still difficult for foreign players, there is a vast and ever expanding pot of wealth in the country which currently is not particularly well serviced.

Australia is rated as being the second most attractive market for international players because it offers many of the comforts of home to Western players: a well developed economy, an attractive business environment and significant numbers of sophisticated high net worth individuals (HNWs).

Perhaps controversially, India places third in Datamonitor' s rankings, let down by key macro and institutional variables, and by the fact that its pool of wealth is still relatively small and concentrated compared with other countries in APAC.

Key reasons to purchase this research

• Understand APAC HNWs' attitudes and investment behaviour, and reasons for choosing/leaving their wealth service.
• Gain insights into the competitive characteristics of the APAC wealth management markets, and learn the factors for success.
• See how the wealth management markets of Australia, Hong Kong, Singapore, India and China score against Datamonitor' s Opportunity Index.

Table of Contents

OVERVIEW

• Catalyst
• Summary
• Methodology

EXECUTIVE SUMMARY

• The rise of the APAC region has changed the distribution of global wealth dramatically
• China is the most attractive wealth management market in APAC, with Australia coming in second and India third
• The wealth management markets are very different across the APAC countries
• For all their newness to wealth, APAC HNWs are demanding when it comes to their wealth management services

THE WEALTH OF THE APAC REGION

• The rise of the APAC region has changed the distribution of global wealth dramatically
  • The stock markets enjoyed many years of rapid growth pre- and post-2008
  • Low levels of inflation have meant that simple savings products have produced real returns

APAC' S WEALTH MANAGEMENT MARKET

• China is the most attractive wealth management market in APAC, with Australia coming in second and India third
• The Wealth Management Opportunity Index
  • Wealth management market features
  • Wealth management client characteristics

APPENDIX

• Datamonitor' s Wealth Management Opportunity Index
  • There are five key parameters when assessing a market for its wealth management potential
  • There are 18 components to the five key parameters of the wealth management opportunity index

• Definitions
• The drivers of growth in the wealthy population
  • Income growth (combined with inflation, changes in GDP by sector, household savings rates and debt levels)
  • Investment returns (market capitalization, interest rates and bond yields)

• The following measures are not, in themselves, drivers of wealthy population growth
  • Market capitalization
  • GDP

• The following measures are not drivers of wealthy population growth except under very restricted circumstances
  • Primary residence value growth
  • Inheritance

• Methodology
  • Global Wealth Model

• Bibliography
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

TABLES

• Table: Tax rates within the countries are not particularly high
• Table: Wealth Management Opportunity Index - Australia, Hong Kong, Singapore, India and China
• Table: Wealth Management Opportunity Index with values - Australia, Hong Kong, Singapore, India and China
• Table: Numbers of listed companies, bonds and ETFs across the five APAC countries, November 2009
• Table: Share of the deposits market by type of banking institution in Hong Kong (HK$m), October 2009
• Table: Breakdown of banks by local vs. foreign in Singapore, 2000 - 09
• Table: Number of banks in India of different type, 2008 - 09
• Table: Number of offices across the type of banking institutions in India, 2004 - 05 to 2008 - 09
• Table: Growth in deposits and investments across the different types of banking institutions in India, 2004 - 05 to 2008 - 09
• Table: Status of foreign banks in China, December 2008
• Table: Business outlets and assets of foreign banks in China, 2003 - 08

FIGURES

• Figure: The economies of APAC have been among the best performing in the world during the past decade
• Figure: Over 2005 - 09, there was positive average real wage growth across the countries, with increases in China being particularly high
• Figure: After sharp falls in 2008, stock markets have rebounded strongly
• Figure: Ordinary deposit rates have produced real returns for investors
• Figure: Largest banks in Australia by household deposits, October 2009
• Figure: The market share picture in China has not changed markedly over 2003 - 08
• Figure: HNWs in APAC countries look for very different things when deciding on their wealth management service
• Figure: The services in demand vary dramatically by country in the APAC region
• Figure: Business/entrepreneurship is the source of most wealth in the APAC region
• Figure: Appetite for risk dropped back markedly in 2009

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