Trends in China’s Wealth Management Industry

by Hua Zhang, January 22, 2014
Industry Trends
Asia-Pacific

Abstract

Celent projects that China’s wealth management market will hit US$12 trillion in assets by 2014. After 10 years of rapid growth, the market now faces a turning point as disruptive entrants and a more open environment challenge the incumbents.

Financial institutions face a more complex market in this new environment. The complexities include interest rate deregulation, the entrance of nonbanks into wealth management, asset securitization, globalization of investments, and more. Customer requirements have also changed; for example, 46% of high net worth individuals plan to invest in overseas markets within the next three years. New technologies including Big Data and social media are being applied to wealth management. Some Internet companies have also introduced their own high-yield money market funds, which are almost as fluid as the demand deposits in banks. In the report Trends in China’s Wealth Management Industry, Celent examines trading, asset management, marketing, and technology trends.

 

“Despite declining AuM at mutual fund companies, there is strong demand for wealth management systems in China,” says Hua Zhang, Analyst with Celent’s Asian Financial Services Group and author of the report. “Large numbers of new asset managers are entering the market. The rapid development and transformation of the trust industry will bring about new IT requirements. The private banking divisions of commercial banks will be made into independent entities, which will also drive demand for technology.”

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Investment Trend of Retail Investors

3

 

Asset Size of Personal Investment

3

 

Distribution of Assets

3

 

Overseas Investments

4

Trading Trends

6

 

Cross-Border Trends

6

Trends in Asset Management and Services

8

 

Product Trends

8

 

Family Office Financial Management Business

8

Marketing

10

 

Marketing via the Internet

10

 

Reaching Customers Through Mobile Facilities and Social Media

11

Changes in China’s Wealth Management Industry

12

 

Rapid Development of China’s Trust Industry

13

 

The Establishment of Private Banks

15

 

Other Trends

15

Early Days for Wealth Management Technology in China

17

 

Wealth Management Technology in the Banking Sector

17

 

Leading Wealth Management Technology Providers

18

Conclusion

20

Leveraging Celent’s Expertise

22

 

Support for Financial Institutions

22

 

Support for Vendors

22

Related Celent Research

23

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