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USB Eyes to Capitalize on Growth Wealth Management Needs in China

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Published on : Jul 02, 2015

According to a recent report published by leading Swiss Bank, UBS, affluent Chinese have exhibited increased propensity towards long-term investments and diversifying their assets. The lead analysts of UBS sees heightened need for wealth management in the country. 

As an increasing number of people from China attain assets above US$2 million or ultra-high net worth, equivalent to US$50 million or above, their wealth management requirements are coming into forefront as they start planning retirement as well as succession and inheritance matters for the successive generation, said the president of UBS (China) Limited, Karen Chen. 

In a recent interview, Karen Chen told the South China Morning Post that this affluent class in China mostly includes entrepreneurs who are wary of the possibility of their wealth getting diluted with span of time. This sect of Chinese entrepreneurs worry about the likelihood of their future generation not taking their endeavors seriously, which could jeopardize their succession plans. 

She also revealed that there is a group of entrepreneurs in China who seek wealth management services that can help them out with their retirement plans. 

Chen revealed that unlike foreign investors who considers investing in long-term plans spanning up to five to seven years, Chinese investors sees investing in plans spanning for about three years as “very long”. 

Owing to rising concerns about retirement and inheritance, an increasing number of Chinese entrepreneurs are considering to invest their money in long-term and comprehensive wealth management solutions. 

Entrepreneurs in China exhibits a typical habit of investing large part of their wealth in family business, while the surplus is invested on domestic equity. A considerable number of clients in the UBS banks are veteran investors who come with years of experience of purchasing stocks in the market encompassing the mainland. However, their investment portfolios concentrate mostly on equities owing to which the demand for wealth management services has increased in China.