HNWI Asset Allocation in China to 2015

HNWI Asset Allocation in China to 2015

Synopsis

This report is the result of WealthInsight's extensive research covering the HNWI population and Wealth Management industry in China. This report provides detailed figures on the current and expected HNWI asset allocations of China's HNWI to 2015.

Summary

This report provides the latest asset allocations of China's HNWI. The report also includes projections of the volume, wealth and asset allocation of China's HNWI to 2015 and a comprehensive and robust background of the local economy, including, uniquely, detailed analysis of economic and political risks to HNWI wealth creation

Scope

The report features:

• Independent market sizing of China's HNWI
• Volume, wealth and allocation trends from 2007 to 2011 - Volume, wealth and allocation forecasts to 2015
• Current insights into the drivers of HNWI wealth

Reasons To Buy

• The WealthInsight HNWI Database is an unparalleled resource and the leading database of its kind. Compiled and curated by a team of expert research specialists, the HNWI Database comprises up to one hundred data-points on over 100,000 HNWI around the world. With the HNWI Database as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI universe in each of the countries and regions we cover.
• Comprehensive forecasts to 2015.

Key Highlights

• There are currently 1.3 million HNWIs in China with a combined wealth of US$4.3 trillion, which equates to 26% of the total wealth held in the country. WealthInsight expects HNWI wealth to increase at a CAGR of 14.7% over the forecast period to reach US$7.5 trillion in 2015, while volume will grow at a CAGR of 13.5% to reach over 2.1 million in 2015.
• Alternative asset holdings have increased dramatically since 2009 and this growth is expected to continue into the forecast period, with alternatives rising from 4.7% of total HNWI assets in 2011 to 6.9% in 2015. This will be driven by significant growth in hedge funds, private equity, collectables and index-linked funds.
• A movement from cash into equities is also expected, with equity allocations reaching 33% of total assets in 2015, compared to 30% in 2011. Other notable changes include a rise in fixed-income investments from 4.5% of total assets in 2011 to 5.8% in 2015. This will be facilitated by significant development of the local corporate bond market, which is expected to grow by over 34% per year during the forecast period.

Companies Mentioned

Chinese banks:

• Bank of China
• Agricultural Bank of China
• China Construction Bank
• Industrial & Commercial Bank of China
• China Citic Bank
• China Merchants Bank
• Bank of Communications
• China Minsheng Banking Corp
• China Everbright Bank
• Bank of Dalian
• Bank of China

Foreign banks:

• HSBC China
• Citibank China
• UBS AG
• Deutsche Bank China
• Bank of Tokyo-MUFJ
• DBS China
• BNP Paribas
• Standard Chartered
• Royal Bank of Scotland
• JP Morgan Chase
• Credit Agricole

Joint ventures:

• ICBC Credit Suisse
• BOC BlackRock
• China Citic Bank and BBVA
• Santander CCB
• Ping An Bank and HSBC
• First Sino Bank and Lotus Worldwide
• BoCommLife and CBA
• Multi-Family Offices
• Serficom Shanghai
• AMC Group - Asset Management China
• KCS Services Limited

• 1 Introduction
  • What is this Report About?
• 2 Executive Summary
• 3 Wealth Sector Fundamentals
  • 3.1 Political Background of the Wealth Sector
  • 3.2 Economic Background to the Wealth Sector
  • 3.3 Benchmarking Chinese Wealth in Context
  • 3.3.1 Distribution of wealth
  • 3.3.2 Alternate scenarios for China's economy to 2015
• 4 Analysis of Chinese HNWI Investment
  • 4.1 Analysis by Asset Class
  • 4.1.1 Changing trends in liquid assets - equity, fixed-income and cash deposits
  • 4.1.2 Trends in alternative assets
• 4.1.3 Trends in "art, wine and wheels"
• 4.1.4 Trends of investments in real estate
• 4.1.5 Trends of investments in cash and deposits
• 4.1.6 Trends of investments in fixed-income
• 4.1.7 Trends of investments in equity
• 4.1.8 Trends of investments in business interest
• 4.2 Analysis of Foreign Investments
• 4.2.1 Trend of investments in rest of Asia-Pacific
• 4.2.2 Trend of investments in North America and Europe
• 4.2.3 Trend of investments in Africa, the Middle East and Latin America
• 5 Appendix
• 5.1 Pertinent Regulations
• 5.1.1 Regulations on banks
• 5.1.2 Regulations on foreign direct investment
• 5.1.3 Regulations on wealth management
• 5.1.4 Regulations on offshore investment
• 5.1.5 Regulations on foreign investment in China
• 5.1.6 Regulations on leveraged buyouts and mergers and acquisitions
• 5.1.7 Regulations on hedge funds and derivatives
• 5.1.8 Regulations on private equity investment
• 5.2 Key Economic Trends and Drivers
• 5.2.1 Renminbi to US dollar moving annual average exchange rate
• 5.2.2 Real GDP growth
• 5.2.3 Per-capita GDP
• 5.2.4 Gross savings rate as a percentage of GDP
• 5.2.5 Domestic Market Capitalization
• 5.2.6 Housing price index
• 5.2.7 Commodity index
• 5.2.8 Foreign direct investment
• 5.2.9 Investments of FIIs in equity products
• 5.2.10 Inflation rate
• 5.2.11 Repo rate
• 5.2.12 Balance of payments
• 5.2.13 Stock market performance
• 5.2.14 Fiscal position
• 5.2.15 HNWI wealth vs GDP
• 5.2.16 Capital formation as a percentage of GDP
• 5.2.17 Disposable income as a percentage of GDP
• 6 About WealthInsight
• List of Tables
• Table 1: HNWI Wealth Band and Group Definitions
• Table 2: Regional Definitions
• Table 3: HNWIs - Trends of Liquid Assets (%), 2007-2015
• Table 4: HNWIs - Liquid Asset Composition (%), 2007-2015
• Table 5: HNWIs - Trends of Investments in Alternative Assets (%), 2007-2015
• Table 6: HNWIs - Alternative Asset Composition (%), 2007-2015
• Table 7: HNWIs - Trends in "Art, Wine and Wheels", 2006-2010
  • Table 8: HNWIs - Change in Foreign Asset Allocation, 2007-2015
  • Table 9: HNWIs - Foreign Allocations by Asset Class, 2007-2015
  • Table 10: HNWIs - Global Distribution of Foreign Investments, 2007-2015
  • Table 11: HNWIs - Trends of Foreign Investments, 2007-2015
  • Table 12: RMB to US$ Moving Annual Average Exchange Rate, 2006-2015
  • Table 13: Real GDP Growth Rate, 2006-2015
  • Table 14: GDP Per Capita, 2006-2015
  • Table 15: Gross Savings as a Percentage of Real GDP, 2006-2015
  • Table 16: Domestic Market Capitalization, 2006-2010
  • Table 17: Housing Price Index, 2006-2010
  • Table 18: Commodity Indices, 2006-2015
  • Table 19: Foreign Direct Investments, 2006-2015
  • Table 20: Investments of FIIs in Equity Products, 2006-2009
  • Table 21: Inflation Rate, 2006-2015
  • Table 22: Repo Rate, 2006-2015
  • Table 23: Balance of Payments, 2006-2010
  • Table 24: Stock Market Performance, 2006-2010
  • Table 25: External and Fiscal Debt as Percentage of GDP, 2006-2015
  • Table 26: HNWI Wealth vs GDP, 2007-2015
  • Table 27: Capital Formation as a Percentage of GDP, 2006-2015
  • Table 28: Disposable Income as a Percentage of GDP, 2006-2015
• List of Figures
  • Figure 1: HNWI Wealth Band Definitions
  • Figure 2: WealthInsight Map of China
  • Figure 3: HNWIs Wealth Sector Market Attractiveness, 2007-2015
  • Figure 4: HNWIs - China vs RoW and Asia-Pacific
  • Figure 5: HNWIs - Asset Class Composition, 2007-2015
  • Figure 6: HNWIs - Changing Trends in Total Liquid Assets (% of Total Assets), 2007-2015
  • Figure 7: HNWIs - Liquid Asset Composition (US$ Billion), 2007-2015
  • Figure 8: HNWIs - Alternative Asset Composition (US$ Billion), 2007-2015
  • Figure 9: HNWIs - Trends in "Art, Wine and Wheels", 2006-2010
  • Figure 10: HNWIs - 2015 Foreign Asset Allocation vs Growth
  • Figure 11: HNWIs - Global Distribution of Foreign Investments, 2007-2015
  • Figure 12: INR to US$ Moving Annual Average Exchange Rate, 2006-2015
  • Figure 13: Real GDP Growth (%), 2006-2015
  • Figure 14: GDP Per Capita, 2006-2015
  • Figure 15: Gross Savings as a Percentage of Real GDP, 2006-2015
  • Figure 16: Domestic Market Capitalization, 2006-2010
  • Figure 17: Housing Price Index, 2006-2010
  • Figure 18: Commodity Indices, 2006-2015
  • Figure 19: Foreign Direct Investments, 2006-2015
  • Figure 20: Investments of FIIs in Equity Products, 2006-2009
  • Figure 21: Inflation Rate, 2006-2015
  • Figure 22: Repo Rate, 2006-2015
  • Figure 23: Balance of Payments, 2006-2010
  • Figure 24: Stock Market Performance, 2006-2010
  • Figure 25: External and Fiscal Debt as a Percentage of GDP, 2006-2015
  • Figure 26: HNWI Wealth vs GDP, 2007-2015
  • Figure 27: Capital Formation as a Percentage of GDP, 2006-2015
  • Figure 28: Disposable Income as a Percentage of GDP, 2006-2015