"Wealth in China: Sizing the Market Opportunity 2017" analyzes the Chinese wealth and retail savings and investments markets, with a focus on the HNW segment. The report is based on our proprietary datasets.
Thanks to lower economic productivity, the remarkable wealth growth rates of the past few years will not be repeated in China over the forecast period. Nevertheless, strong predicted retail investments growth - led by strong mutual fund performance - will continue at a faster rate than in the wider region. Between 2016 and 2020 liquid assets held by affluent individuals are forecast to record a compound annual growth rate (CAGR) of 10%, representing a sizable opportunity for wealth managers operating in the country.
Chinese HNW investors allocate a noteworthy proportion of their investments into non-traditional assets, mostly in real estate. However, alternative and commodities investments also constitute an above-average and growing proportion. To gain access to a better range of investment options, HNW investors in China also invest a large proportion of their wealth offshore.
Specifically the report -
- Sizes the affluent market (both by number of individuals and the value of their liquid assets) using our proprietary datasets.
- Analyzes which asset classes are favored by Chinese investors and how their preferences impact the growth of the total savings and investments market.
- Examines HNW clients' attitudes towards non-traditional investments, such as property and commodities.
- Identifies key drivers and booking centers for offshore investments.
- Examines the tax landscape in China and future implications for investors.
- At the end of 2016, of the approximately 1.06 billion adults living in China 3.8% could be considered affluent.
- Asset growth is expected to be strongest in the $10m+ asset band, which will record a CAGR of 15.1% between 2016 and 2020, compared to a CAGR of 10.0% for affluent individuals.
- Deposits continue to dominate China's retail investments market, but mutual fund holdings are forecast to grow at the fastest pace over the next five years.
- Chinese HNW investors allocate a noteworthy proportion of their investable assets into non-traditional investments; in particular, quasi-real estate investment trusts (REITs) have emerged as a popular type of investment.
Reasons to buy
- Benchmark your share of the Chinese wealth market against the current market size.
- Forecast your future growth prospects using our projections for the market to 2020.
- Identify your most promising client segment by analyzing penetration of affluent individuals in China.
- Evaluate your HNW proposition by understanding how the Chinese tax system impacts HNW clients.
- Review your offshore strategy by identifying HNW motivations for offshore investments and their preferred booking centers.