China’s private wealth surges to 165 trillion yuan
As more wealth moves offshore, Chinese private banks have followed, opening up a new front in their competition with international wealth managers
China’s private wealth stood at 165 trillion yuan in 2016, an increase of almost 50 per cent from two years earlier, according to new research from China Merchants Bank and Bain and Co.
The report forecasts the market will grow 14 per cent this year to 188 trillion yuan.
Not surprisingly, with such a prize on offer, this wealth is leading to fierce competition among financial services players, all hoping to service China’s ever growing number of rich individuals.
Where there is demand, there is supply, and as there are a lot of opportunities in the private wealth market, the competitive arena has become more intense
Domestically, Chinese banks have a dominant position and are holding off the threat from wealth management financial technology firms and foreign players. But when it comes to Chinese wealth overseas, all is still to play for.
“Where there is demand, there is supply, and as there are a lot of opportunities in the private wealth market, the competitive arena has become more intense,” said Wang Jing, general manager at China Merchants Bank’s private banking department. She was speaking in Hong Kong on Wednesday at the launch of the China Private Wealth Report 2017, produced by the bank and Bain and Co.
The size of the mainland’s private wealth market climbed 47 per cent from 112 trillion yuan in 2014. The total 165 trillion yuan of investable assets last year represents a more than sixfold increase from just 26 trillion yuan a decade earlier, according to the survey.
The report found that at the end of last year there were approximately 1.6 million Chinese with at least 10 million yuan in investable assets, eight times higher than a decade ago.
“As the number of China’s wealthy continues to grow exponentially, it is clear from the research that they are incredibly diverse, have a multitude of needs and that their priorities are starting to shift,” said Jennifer Zeng, a partner at Bain and one of the authors of the report.