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China's wealth management market to outpace Japan's by 2015 |
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| Date: 30/04/2009 |
Type: Article |
Language: English |
Source: China Knowledge |
China's wealth market is expected to continue to grow exponentially and surpass that of Japan, Asia-Pacific's largest wealth market, by 2015, said Didier Brizard, a representative of Tiaré Groupe, at the Shorex Wealth Management Forum Singapore 2009 on Tuesday.
Brizard spoke on the strength of the Chinese economy and the growth of Chinese wealth in his presentation on Family Offices (private, one-client investment management companies) in China. He attributed the growth in wealth to China's high savings rate, its success in the real estate and manufacturing sectors, and to the recent surge in IPOs. His data came in part from a study on Family Offices in Asia that was conducted by the University of St. Gallen, a leading Swiss institution, and commissioned by VP Bank Group, one of the largest banks in Liechtenstein.
Brizard predicts huge demand for wealth management services in China, despite the immature market, in part because 70% of China's wealth, most of which was created in the last 20 years, will be transferred to the next generation within the next decade. China will see a growing need to combat the proverbial "shirtsleeves to shirtsleeves" problem of family wealth that does not last for three generations. As a result of improvements in the Chinese banking industry, a larger proportion of Chinese wealth may begin to be managed in mainland China rather than in Hong Kong or Singapore.
The Shorex Wealth Management Forum Singapore 2009 drew exhibitors and attendees from Europe, Asia, North America, Africa, the Middle East and the South Pacific. Since it mainly focuses on Asia, and since companies are tightening travel budgets to cut costs, it is not surprising that the conference seemed dominated by those who had shorter distances to travel. However, the turnout and level of interest was overall better than expected, said Wing-Yun Wong, managing director of First Capital Partners Ltd (FCP). FCP participated in the forum both last year and this year to promote Hong Kong as a world-class offshore jurisdiction, citing Hong Kong's favorable tax policies and excellent geographical location.
Other offshore jurisdictions represented at the Shorex forum include Labuan International Business and Financial Centre, whose CEO Martin Crawford said that places like China will probably become the biggest wealth management markets in the world.
The Shorex Wealth Management Forum, which is geared towards professional advisers, asset managers, private bankers, professional investors, financial service providers, and tax planners, is a conference and exhibition offering information on new services, products, and ideas in wealth management. The forum has been held in Geneva, Switzerland seven times and will be held there again in December this year. This is the first year it has been held in Asia. |
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