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Market Research Report

Emerging Opportunities in the Chinese Wealth Management Industry: Market Size, Strategies, Products and Competitive Landscape

Published by BRICdata Product code 245169
Published Content info 75 Pages
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Emerging Opportunities in the Chinese Wealth Management Industry: Market Size, Strategies, Products and Competitive Landscape
Published: June 18, 2012 Content info: 75 Pages
Description

Synopsis

The report provides detailed market analysis, information and insights, including:

  • In-depth analysis of wealth management strategies adopted by banking and financial institutions in China
  • How companies in China are adopting marketing strategies to succeed in the wealth management industry
  • Key trends and drivers supporting the growth of the wealth management industry in China
  • Challenges faced by companies in the Chinese wealth management industry
  • Company-wise analysis of marketing strategies and product offerings in the wealth management industry

Summary

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 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.

Scope

  • This report provides an extensive analysis of the Chinese wealth management industry, including market sizing by asset classification
  • The report highlights various asset classes available for HNWIs and also classifies the investment made by HNWIs in each of the mentioned asset classes
  • It also provides an analysis of the marketing strategies used by banking and financial services companies in China
  • The report provides a detailed understanding of the product offerings of banking and asset management companies
  • It also provides insights into the strategies that companies can adopt to succeed in the industry to strengthen market position

Reasons To Buy

  • Gain in-depth insight into the wealth management industry and the strategies used in China
  • Understand the various market dynamics of the wealth management industry in China
  • Take informed decisions and formulate effective strategies based on the report's detailed market insights on wealth management in China
  • Understand the growth strategies adopted by key companies
Table of Contents
Product Code: IS2016MR

Table of Contents

1 Executive Summary

2 Chinese Wealth Management Market Environment

  • 2.1 Macroeconomic Fundamentals
    • 2.1.1 GDP at constant prices
    • 2.1.2 Inflation rate
    • 2.1.3 Annual disposable income
    • 2.1.4 Shanghai Stock Exchange market capitalization
    • 2.1.5 Interest rate
  • 2.2 Regulatory Framework
    • 2.2.1 Banking regulations
    • 2.2.2 Wealth management and related norms
    • 2.2.3 Regulatory framework on hedge funds

3 Market Size and Growth Potential of Chinese Wealth Management

  • 3.1 Market Size of Chinese Wealth Management by HNWIs
    • 3.1.1 High-net-worth-individuals (HNWIs)
    • 3.1.2 Ultra-high-net-worth-individuals (UHNWIs)
    • 3.1.3 The core high-net-worth individuals (core HNWIs)
  • 3.2 HNWI Investments by Asset Class
    • 3.2.1 Investment trends in liquid assets - equity, fixed income and cash deposits
    • 3.2.2 Investment trends in cash and deposits
    • 3.2.3 Trends in alternative assets
    • 3.2.4 Investments in real estate
    • 3.2.5 Investment trends in equity
    • 3.2.6 Trends in art, wine and automobiles

4 Wealth Management Services in China

  • 4.1 Portfolio Management and Portfolio Rebalancing
    • 4.1.1 Bank of China wealth management
    • 4.1.2 China Merchant Bank (CMB) Sunflower financial management planning service
    • 4.1.3 Standard Chartered Bank's investment services
  • 4.2 Trusts and Estate Planning and Management
    • 4.2.1 China Banking Corporation's estate planning services
    • 4.2.2 Weir & Associates trust and planning company
  • 4.3 Private Banking and Financing
    • 4.3.1 ICBC Private Banking Services
    • 4.3.2 China Merchant Bank's Sunflower VIP service
    • 4.3.3 CitiGold private banking
  • 4.4 Investment Management and Advisory
    • 4.4.1 ICBC Perfect Match wealth management product
    • 4.4.2 Bank of China's Zhongyinjifu wealth management investment plan

5 Trends and Growth Drivers

  • 5.1 HNWIs Shifting Investments from Residential Real Estate as Regulations Cool the Market
  • 5.2 Tax Optimization Products Are Not Currently in High Demand
  • 5.3 Increasing Number of HNWIs in China Presents Significant Business Opportunities
  • 5.4 Real GDP Growth Rate
  • 5.5 Chinese Wealth Management Customers are Shifting to Professional Institutions
  • 5.6 Money Lenders are Shifting Their Focus to Wealth Management Products
  • 5.7 Increasing Number of Wealth Management Institutions in the Chinese Market
  • 5.8 Emergence of Offshore Wealth Management in China
  • 5.9 Chinese HNWIs Are Using Multiple Wealth Management Institutions

6 Marketing and Growth Strategies of Chinese Wealth Management Service Providers

  • 6.1 Providing Personalized Investment Services
  • 6.2 Online Wealth Management Services
  • 6.3 Mobile Application for Wealth Management Services
    • 6.3.1 Bank of China's mobile investment management application
    • 6.3.2 Bank of Beijing iPhone application for marketing
    • 6.3.3 ICBC exclusive mobile banking wealth management products
  • 6.4 Product Diversification
  • 6.5 Partnering with Assets Management Companies
  • 6.6 Utilizing Social Media to Interact With Customers
    • 6.6.1 Chinese banks are using social media platforms to build strong relationships with their customers

7 Strategies to Succeed in the Chinese Wealth Management Industry

  • 7.1 Effective Customer Segmentation
  • 7.2 Building an Effective Distribution Strategy
  • 7.3 Brand Building
  • 7.4 Identifying Customer Needs to Increase Share of Wallet
  • 7.5 Building Core Competencies
  • 7.6 360 Degree View of Investment

8 Challenges

  • 8.1 Underdeveloped Wealth Management Products
  • 8.2 Lack of Expert Professionals in Wealth Management
  • 8.3 Complicated and Cumbersome Tax System
  • 8.4 Complex Regulatory Structure
  • 8.5 Move Away From Self Management
  • 8.6 Demand for Intergenerational Wealth Transfer and Younger Clientele
  • 8.7 Philanthropy

9 Competitive Landscape

  • 9.1 Industry Structure
  • 9.2 Wealth Managers and Private Banks
    • 9.2.1 Public sector banks
    • 9.2.2 Wealth managers
    • 9.2.3 Private-sector banks
    • 9.2.4 Foreign banks and MNCs
    • 9.2.5 Joint ventures

10 Company Profiles

  • 10.1 Bank of China
    • 10.1.1 Company overview
    • 10.1.2 Business segmentation
  • 10.2 Agricultural Bank of China Limited
    • 10.2.1 Company overview
    • 10.2.2 Business segmentation
  • 10.3 China Construction Bank Corporation
    • 10.3.1 Company overview
    • 10.3.2 Business segmentation
  • 10.4 China Merchants Bank Company Limited
    • 10.4.1 Company overview
    • 10.4.2 Business segmentation
  • 10.5 Ping An Insurance (Group) Company of China Ltd
    • 10.5.1 Company overview
    • 10.5.2 Business segmentation
  • 10.6 Non-Banking Investment Management Companies in China
    • 10.6.1 China Asset Management (ChinaAMC)
    • 10.6.2 Credit Suisse China
    • 10.6.3 China CITIC Bank

11 Appendix

  • 11.1 About BRICdata
    • 11.1.1 Definitions
    • 11.1.2 Areas of expertise
  • 11.2 Methodology
  • 11.3 Disclaimer

List of Tables

  • Table 1: Chinese GDP at Constant Prices (US$ Billion), 2007-2016 (Base Year 1999-2000)
  • Table 2: Chinese Inflation Rate (%), 2007-2016
  • Table 3: Chinese Annual Disposable Income (US$ Billion), 2007-2016
  • Table 4: Chinese's Shanghai Stock Exchange Market Capitalization (US$ Trillion), 2007-2011
  • Table 5: China Central Bank Interest Rate Fluctuations (%), September 2009 - July 2011
  • Table 6: Chinese HNWIs Volume by Wealth Bands, 2007-2011
  • Table 7: Chinese HNWIs Volume by Wealth Bands, 2007-2011
  • Table 8: Chinese HNWIs Volume by Wealth Bands, 2012-2016
  • Table 9: Chinese HNWIs Volume by Wealth Bands, 2012-2016
  • Table 10: Chinese HNWIs Value by Wealth Band (US$ Billion), 2007-2011
  • Table 11: Chinese HNWIs Value by Wealth Band (US$ Billion), 2012-2016
  • Table 12: Chinese UHNWIs Volume by Type of UHNWI, 2007-2011
  • Table 13: Chinese UHNWIs Volume by Type of UHNWI, 2012-2016
  • Table 14: Chinese UHNWIs Value by Type of UHNWI (US$ Billion), 2007-2011
  • Table 15: Chinese UHNWIs Value by Type of UHNWI (US$ Billion), 2012-2016
  • Table 16: Chinese Core HNWIs Volume by Type of Core HNWI, 2007-2011
  • Table 17: Chinese Core HNWIs Volume by Type of Core HNWI, 2012-2016
  • Table 18: Chinese Core HNWIs Value by Type of Core HNWI (US$ Billion), 2007-2011
  • Table 19: Chinese Core HNWIs Value by Type of Core HNWI (US$ Billion), 2012-2016
  • Table 20: Chinese HNWI Liquid Asset Composition (%), 2007-2016
  • Table 21: Chinese HNWI - Trends of Investments in Alternative Assets (US$ Billion), 2007-2011
  • Table 22: Chinese HNWI - Trends of Investments in Alternative Assets (US$ Billion), 2007-2011
  • Table 23: Chinese HNWI - Alternative Asset Composition (%), 2007-2016
  • Table 24: Chinese Real GDP Growth Rate (%), 2007-2016
  • Table 25: ChinaAMC: Main Services
  • Table 26: Credit Suisse China: Main Services
  • Table 27: CITIC Bank Corporation Limited: Main Services
  • Table 28: Definitions

List of Figures

  • Figure 1: Chinese GDP at Constant Prices (US$ Billion), 2007-2016 (Base Year 1999-2000)
  • Figure 2: Chinese Inflation Rate (%), 2007-2016
  • Figure 3: Chinese Annual Disposable Income (US$ Billion), 2007-2016
  • Figure 4: Chinese's Shanghai Stock Exchange Market Capitalization (US$ Trillion), 2007-2011
  • Figure 5: China Central Bank Interest Rate Fluctuations (%), September 2009 - July 2011
  • Figure 6: Chinese Wealth Management Industry Customers - HNWI Composition
  • Figure 7: Chinese HNWIs Value by Wealth Band (US$ Billion), 2007-2011
  • Figure 8: Chinese HNWIs Value by Wealth Band (US$ Billion), 2012-2016
  • Figure 9: Chinese HNWIs Regional Distribution (% Share), 2011
  • Figure 10: Chinese HNWIs Regional Distribution - Key Regions, 2011
  • Figure 11: Chinese UHNWIs Volume by Type of UHNWI, 2007-2011
  • Figure 12: Chinese UHNWIs Volume by Type of UHNWI, 2012-2016
  • Figure 13: Chinese UHNWIs Value by Type of UHNWI (US$ Billion), 2007-2011
  • Figure 14: Chinese UHNWIs Value by Type of UHNWI (US$ Billion), 2012-2016
  • Figure 15: Chinese UHNWIs Regional Distribution (% Share), 2011
  • Figure 16: Chinese Core HNWIs Volume by Type of Core HNWI, 2007-2011
  • Figure 17: Chinese Core HNWIs Volume by Type of Core HNWI, 2012-2016
  • Figure 18: Chinese Core HNWIs Value by Type of Core HNWI (US$ Billion), 2007-2011
  • Figure 19: Chinese Core HNWIs Value by Type of Core HNWI (US$ Billion), 2012-2016
  • Figure 20: Asset Class Composition (% Share), 2007-2016
  • Figure 21: Chinese HNWI Liquid Asset Composition (US$ Billion), 2007-2016
  • Figure 22: HNWIs - Investment in Cash and Deposits (US$ Billion), 2007-2016
  • Figure 23: Chinese HNWI - Trends of Investments in Alternative Assets (in US$ Billion), 2007-2011
  • Figure 24:Chinese HNWI - Trends of Investments in Alternative Assets (in US$ Billion), 2012-2016
  • Figure 25: Chinese HNWI Investment in Real Estate (US$ Billion), 2007-2016
  • Figure 26: Chinese HNWI Investment in Equities (US$ Billion), 2007-2016
  • Figure 27: Mercedes-Benz and Porsche* Cars Unit Sales in Chinese Market
  • Figure 28: Wealth Management Services In China
  • Figure 29: Chinese Wealth Management Trends and Growth Drivers
  • Figure 30: HNWI - Growth Factor Correlation, 2007-11
  • Figure 31: PICC Social Media Platform on Weibo.com
  • Figure 32: Strategies to Succeed in the Chinese Wealth Management Industry
  • Figure 33: A Unified View of Customer Investment
  • Figure 34: Challenges in Chinese Wealth Management
  • Figure 35: Chinese Wealth Management Industry Structure
  • Figure 36: Major Companies in Chinese Wealth Management Industry
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