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PERSONAL INVESTMENT PRODUCTS - CHINA - JULY 2018

Published By :

Mintel

Published Date : Jul 2018

Category :

Banking

No. of Pages : N/A

Investors who have an annual household income of over RMB 500,000 are actually not that different from general consumers in terms of investment experience and preferred products. They are pretty mainstream. High risk high return product preferers tend to be those who have a high educational background or 40-49-year-olds living in tier one cities. They seem to hold a positive perception towards their future financial status so they are bold and aggressive during investment.

Table of contents
OVERVIEW
Background
Covered in this Report
Excluded
EXECUTIVE SUMMARY
The market
Figure 1: Best- and worst-case forecast of personal investment market value, 2013-23
The consumer
High Income Investors do not necessarily have more investment experience
Figure 2: Years of investment experience, March 2018
No major change in investment products selected
Figure 3: Investment product ownership, March 2018
Allocating 11-30% of assets for high risk high return products is the norm
Figure 4: Allocation for high risk high return products, March 2018
Low risk is prioritised over high return
Figure 5: Important consideration factors of investment products, March 2018
Specialised platforms and financial newspaper/journals as valuable channels
Figure 6: Investment information channel - TURF Analysis – April 2018
Mintropolitans are no different from mainstream investors
Figure 7: Attitudes towards investment – CHAID – Tree output, April 2018
What we think
ISSUES AND INSIGHTS
What features of investment products are worth highlighting?
The facts
The implications
Who are risk takers in investment and how to engage them?
The facts
The implications
Is AI challenging humans on investment?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Market size doubles that of savings
The mixed market drivers
Convincing the investors in multiple methods
MARKET SIZE AND FORECAST
A CAGR of 16.8% over the next five years
Figure 8: Best- and worst-case forecast of personal investment market value, 2013-23
Represent over 30% of money supply (M2)
Figure 9: Comparisons between investment, demand deposit and M2 amounts, 2013-18
MARKET FACTORS
Slowing down but steady economic growth
Figure 10: GDP growth rate in China, 2014 Q1 – 2018 Q1
Upcoming personal income tax adjustment
The switch from property investment to financial investment
Figure 11: Consumer expenditure and growth rate, by selected sector, 2017
The promotion of internet finance platforms
Figure 12: Landing page of wealth management products on WeChat and Alipay
The aging society
Figure 13: China population structure, by age, 2013-22 (fore)
Monetary fund under tightening regulation
Under the shadow of a looming trade war
MARKET ACTIVITIES
AI advisory
Highlighting the stability of investment products
Figure 14: Renrendai’s new brand slogan campaign
Pop-up stores introduced by GuangFa Securities
Figure 15: The pop-up store of GuangFa Securities
THE CONSUMER – WHAT YOU NEED TO KNOW
Young females have greater investment experience than males
The majority allocate 11-30% for high risk high return products
Term explanation makes a difference
Traditional media has not been abandoned yet
MinTs tend to follow the mainstream during investment
INVESTMENT EXPERIENCE AND INVESTABLE ASSETS
Average is six years of personal investment experience
Figure 16: Years of investment experience, March 2018
Longer personal investment experience of young females
Figure 17: Average length of investment experience, by gender and age, March 2018
Two in five have investable assets of above RMB 500k
Figure 18: Amount of investable assets, March 2018
35-44-year-olds have the highest investable assets
Figure 19: Amount of investable assets, by age group, March 2018
OWNERSHIP OF INVESTMENT PRODUCTS
Investors own over four different types on average
Figure 20: Investment product ownership, March 2018
35-39-year-olds are the most passionate about personal investment
Figure 21: Investment product ownership, % who own now, by age group, March 2018
Males being more aggressive than females in product selection
Figure 22: Selected investment product ownership, by gender and age group, March 2018
HIGH RISK HIGH RETURN INVESTMENT ALLOCATION
A mainstream allocation of 11-30%
Figure 23: Allocation for high risk high return products, March 2018
P2P is not favoured by high risk high return investment preferers
Figure 24: Investment products owned, by risky assets allocation, March 2018
High Income Investors are similar
Figure 25: Allocation for high risk high return products, by total and high net-worth investors, March 2018
IMPORTANT CONSIDERATION FACTORS
Build brand reputation through term explanation is critical
Figure 26: Important consideration factors of investment products, March 2018
High risk high return product preferers care more about trade procedure
Figure 27: product allocation differential by level of investment by risk (as benchmark) on selected important consideration factor claim rates, March 2018
Popularity of the product is paid attention to by high school or below investors
INVESTMENT INFORMATION CHANNEL
Online and offline channels are equally important
Figure 28: Investment information channel, March 2018
Females trust bank, while males trust specialised platform
Figure 29: Gap between males and females (as benchmark) on the important information channel, March 2018
Top two channels can reach up to three quarters of investors
Figure 30: Investment information channel - TURF Analysis – April 2018
Financial newspaper and journals are valued by high net-worth group
Finance segment of internet media is worth attention
Figure 31: Investment information channel, by number of years of investment experience, March 2018
ATTITUDES TOWARDS INVESTMENT
Risk aversion is the mainstream
Figure 32: Attitude towards investment risk, March 2018
Understanding the investment product is the basic rule
Figure 33: Attitude towards investing products not understand, March 2018
Follow the wind
Figure 34: Attitude towards investment direction, March 2018
AI advisory welcomed by 25-39-year-old females
Figure 35: Attitudes towards investment – CHAID – Tree output, April 2018
MEET THE MINTROPOLITANS
MinTs means more than being wealthy
Explorative and cautious at the same time
Figure 36: Allocation for high risk high return products, by consumer classification, March 2018
MinTs care more about reliability and liquidity
MinTs tend to be mainstream investors
APPENDIX – MARKET SIZE AND FORECAST
Figure 37: Total market value of personal investment market, 2013-23
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

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