The private wealth market has ushered in a steady development trend.
Despite the epidemic, China's economy still shows strong resilience and resilience, and the scale of its wealth market continues to expand. What is the growth trend of high net worth population in China in the post-epidemic era? What are the characteristics of the crowd structure? What changes will the emergence of new rich groups bring to China's wealth management market? The following is your interpretation.
202 1 the wealth market continues to improve.
In 2020, faced with the impact of the epidemic and the complicated and severe domestic and international environment, China, one of the world's major economies, took the lead in restoring positive economic growth, and its GDP exceeded 1000 billion yuan for the first time, with a contrarian growth of 2.3%, which became a bright color under the global economic gloom. On the basic premise that the macro economy continues to improve, China's private wealth market has also ushered in a steady development trend.
Compared with previous years, the growth rate of high-net-worth individuals and their investable assets in China keeps rising. In 2020, the number of high-net-worth people in China will reach 2.62 million, about 650,000 more than that in 20 18, and the compound annual growth rate will increase from 2016-20 12% in 5 years to 20 18-2020.
With the continuous growth of private wealth, the distribution of high-net-worth people in China has also begun to change, showing the characteristics of radiating from first-tier cities to the surrounding areas and strengthening the gathering of high-net-worth people in three economic circles.
By the end of 2020, the number of high-net-worth individuals in 24 provinces and cities in China had exceeded 20,000, of which Sichuan, Hubei and Fujian had exceeded 65,438+10,000 for the first time, entering the first echelon of Beijing and five southeast coastal provinces and cities (Guangdong, Shanghai, Jiangsu, Zhejiang and Shandong); In addition, there are more than 50,000 high-net-worth individuals in Liaoning, Tianjin, Hebei, Hunan, Henan, Anhui, Jiangxi and Yunnan provinces.
New wealth groups have emerged.
With the rapid development of new economy and new industries, the number of people with wealth growth brought by the appreciation of equity and options has increased greatly. Senior managers and professionals have realized the growth of personal value and company value in promoting the development of enterprises, and they stand out as newly rich groups. According to the survey data of the report, the group size of directors, professional managers (non-directors) and professionals among the high-net-worth population is rising continuously, and the proportion of all high-net-worth population has increased from 36% in 20 19 to 43% in 20021year, surpassing the entrepreneurs of the wealth generation for the first time.
According to the survey data, the proportion of high-net-worth people under the age of 40 increased from 29% in 20 19 to 42% in 20021year, and the trend of younger high-net-worth people was prominent (see Figure 3). This shows that with the rise of the age of the wealth-creating generation, the second-generation heirs gradually mature, some first-generation entrepreneurs begin to inherit the plan and enter retirement, China enterprises gradually begin to hand over, and the second-generation inheritors enter the inheritance period. Among the high-net-worth people under the age of 40, the proportion of the rich generation in the traditional economy is declining. At the same time, driven by the rapid development of new economy and new industries, the speed of young people's wealth creation has accelerated. Among the high-net-worth people under the age of 40, the proportion of newly rich groups represented by the new economy and the new economy has greatly increased, becoming the backbone of high-net-worth groups.
The transformation of wealth management demand
So, what are the differences in the wealth management needs of new wealth groups? The report shows that the demand for young people to create wealth has increased significantly, which is driven by the protection and inheritance needs of mature groups. The report shows that in 20021year, "ensuring wealth security" and "creating more wealth" became the two most important wealth goals, and "comprehensive asset allocation at home and abroad" became the new wealth goal concerned by high net worth people, accounting for 12%, ranking third (see Figure 4). It can be seen that in 20021,the demand of high-net-worth people for sustained wealth growth is still strong, and the planning and arrangement of domestic and foreign assets, different family members, different types of movable property, real estate, equity and other assets are comprehensively considered.
The comprehensive needs of high net worth individuals are deepening, extending from individual needs to family, enterprise and social needs. Personal needs cover all-round financial and non-financial needs including personal asset allocation, high-end lifestyle and tax legal consultation; Family needs include children's education, intergenerational inheritance, family tax legal consultation and family style construction; Enterprise demand covers enterprise investment and financing, M&A value-added, taxation and legal affairs; Social needs include socially responsible investment plans, charitable funds and charitable services.
It is reported that in 20021,among the needs of high-net-worth people, family needs accounted for the highest proportion, reaching 58%, followed by corporate and social needs, accounting for 34% and 28% respectively. People with different identities have different needs. Generation Chuangfu and Dong pay more attention to the needs of enterprises, while stay-at-home wives pay more attention to the needs of families, hoping that private banks can provide one-stop comprehensive services.
High-net-worth individuals demand one-stop solutions and convenient and intelligent services, accounting for 30% and 26% respectively. They have higher requirements for the efficiency and quality of private banks' problem solving, hoping to provide efficient and convenient service experience, which is particularly valued by the traditional economic generation and the new economic generation.
Domestic investment style of high net worth individuals.
20 19-202 1 due to the fluctuation of the capital market and the turmoil of the international situation, the financial maturity of high-net-worth people has improved, the acceptance of net-worth and equity products has increased, and more attention has been paid to professional asset allocation.
First of all, the investment style of high net worth people is more stable, and 58% of them are mainly risk. Most high-net-worth people over the age of 50 enter the later stage of career development, and their preference for asset preservation and stability is more obvious, with the proportion of giving priority to risk accounting for 62%. Some high-net-worth individuals have higher expectations for the future, stronger risk tolerance and more radical investment mentality. Among them, people under the age of 40 are still in the stage of rapid asset accumulation, with high overall risk preference and are more willing to try high-risk and high-yield products.
Secondly, from the perspective of asset allocation portfolio, under the dual influence of supervision and market, asset allocation is more diversified. In the asset allocation of high net worth people, the proportion of fixed income and real estate investment has further decreased.
Overseas investment trend of high net worth individuals
In the next two years, the overall domestic and overseas asset allocation ratio of high-net-worth individuals in China is expected to remain stable, and the asset category will gradually change from traditional real estate to diversified asset types and comprehensive service demand. The asset transfer station and destination of high net worth individuals in China will be further divided according to the national policy orientation, wealth flow, political stability, work and life scenes (children's education, pension) and so on. China, Hong Kong, the United States and Singapore are the three overseas assets transfer stations with the highest mentioned rate in 202 1. However, compared with previous years, the popularity of investment destinations in the United States, Singapore and other places has dropped significantly.
In the choice of private banking service subjects, Chinese-funded overseas institutions and foreign-funded private banks become the main service providers of customer groups by virtue of their rich asset categories. Among them, Chinese overseas institutions accounted for 4 1%, and foreign private banks accounted for 36%. In reports, surveys and interviews, foreign service providers are mentioned more frequently. High-net-worth individuals have more comprehensive and professional requirements for overseas services, and look forward to the full chain services of overseas assets, such as legal and tax planning, and hope that institutions can provide services according to customers' differentiated demands.
On the whole, for the future overseas private banking service institutions, high-net-worth people generally have four types of needs:
The service level of domestic and overseas branches has been further strengthened, and the undertaking capacity of overseas branches has been enhanced;
Can provide superior products and margin financing and securities lending services for some overseas destinations;
The configured asset categories are more abundant;
Expand other service chains besides investment, such as building a safer legal framework for investment and protecting assets.
Among them, the wealth-creating generation in the traditional economy pays more attention to asset categories and the richness of overseas superior products; The wealth-creating generation and high-class people in the new economy have the demand of two-way flow of domestic and foreign assets, emphasizing the ability to undertake overseas; Compared with others, family managers such as stay-at-home wives talk more about language and cultural exchanges.
The awareness of family inheritance is strengthened, and the rich expect "pan-finance" professional advice.
Under the influence of uncertain factors in the external environment, the importance of wealth inheritance is further highlighted, and the awareness of family inheritance of high net worth people is strengthened. In 20 19, 53% of the interviewed high-net-worth people have prepared or started to make relevant arrangements for wealth inheritance, and this proportion rose to 65% in 20021year. At the same time, the concept of wealth inheritance is favored by the newly rich, and planning and arranging the goal and framework of wealth inheritance in advance has gradually become a new trend.
In terms of wealth inheritance, high-net-worth people start with real estate and insurance at the initial stage and expand to family trusts when they mature. According to the survey, among the wealth inheritance methods of high net worth people in China, the proportion of insurance dropped from 37% in 20 19 to 30% in 202 19, the proportion of real estate dropped from 24% in 20 19 to 22% in 202 18, and the proportion of family trust dropped from 20/8.
With the increasing complexity of wealth inheritance, the demand of high net worth people for family office services is increasing. The content that high net worth people are most looking forward to further improving in family office services has evolved from wealth management and arrangement to paying more attention to "pan-financial" professional opinions such as tax law, enterprise management and ability training, among which family style and internal management system, suggestions for future planning and arrangement of family businesses, other family value-added services (such as exclusive medical care and access to educational resources), tax planning, legal and charitable consultation and other obvious needs.
Private banks are facing new challenges.
In the context of the overall slowdown of macroeconomic growth, China's private banking industry is still developing vigorously. Among the A-share listed banks that have disclosed their annual reports, the number of private banking customers and the scale of asset management (AUM) of many banks have achieved double-digit growth. According to the report, with the rapid development, the demand of private banking customers for comprehensive services is prominent, and the demand of private banking customers for institutional selection also includes whether financial institutions can provide comprehensive corporate services, such as one-stop solutions for integrating corporate finance. However, due to the uneven professional level, there is still room for improvement in the degree of cooperation between various lines, and the overall quality can still be further improved.
From the perspective of supply satisfaction, the satisfaction of social welfare investment products such as social responsibility (ESG) investment products reached 58%, and the satisfaction of charity platform and project recommendation reached 49%; However, the demand for the overall design of charity structure planning and construction, law and taxation is low.
Under the influence of the epidemic, the increasingly mature digital ecology in China has accelerated the digitalization process of the banking industry, and the online service ability and data ability of banks have made great progress. The overall acceptance (1 to 10) of digital private banking services by high-net-worth individuals rose from 6.4 in 20 19 to 6.6 in 20021year, and the acceptance of the four groups of people who created wealth in the traditional economy, the new economy, Dong and stay-at-home wives was not less than 6.4, exceeding.
Looking into the future, high-net-worth people have very high expectations for digitalization, but they think there is still much room for improvement. For example, in terms of investment decision-making suggestions and information push, customers expect intelligent insight and interpretation of market information based on their own needs and asset allocation, and dynamically track and push relevant information.