As representatives of China's 'new wealth', many well to do mainlanders adopt a gung-ho attitude to investment choices.
Used to prolonged economic expansion, they usually go for high-risk, high-return options and contend with the volatility of the mainland's equity markets.
'In general, Chinese investors are more dynamic and looking for more aggressive investment objectives,' says Richard Mak, managing director and head of advisory services for Pictet (Asia). 'But successful entrepreneurs and business people who have created their wealth over the past 10 years or so may want to 'cash in', and then capital preservation becomes the main concern.'
If circumstances allow for offshore holdings, Mak and his team can find themselves having to introduce clients to the benefits of diversification and a structured, more conservative approach to personal wealth management.
'Clients have varying objectives and we always look at things case by case,' Mak says. 'But the concept of diversification makes sense, transitioning from just stock trading to creating a long-term portfolio that gives steady returns and lowers the level of risk.'
Advocating this approach can be easier if the prospective client already has an international outlook, developed through business dealings or overseas travel. In such instances, the individuals concerned are more likely to appreciate China's exceptional situation and that bull markets don't last forever.