Industry News
Chinese HNWIs’ Increase Overseas Investment Activity

China has produced high-net-worth individuals (HNWIs) at a startling pace in the last decade. In fact, the number of Chinese HNWIs worth more than RMB 10million (about $1.5million) reached 1.87 million in 2017. Considering there were approximately just 180,000 in 2006, this represents a ten-fold increase and is an astounding testament to the rapid growth of China’s wealth generation.

 

As individual wealth continues to grow, Chinese investors are becoming more open-minded regarding how and where to allocate their wealth. For example, in 2011, 19 percent of HNWIs invested outside of mainland China, whereas in 2017, this figure had increased to about 56 percent. According to Bain & Co and China Merchants Bank, the increased interest of investing overseas stems from several factors. Diversifying the investment and spreading wealth risk was generally the primary reasons, while investing for children’s education and emigrating by investing abroad also featured strongly.

 

Chinese HNWIs usually look towards financial centers like New York, London, Singapore and Hongkong as feasible investment destinations. For those who already own overseas assets, 50 percent choose financial investment, while 40.6 percent are engaged in real estate management. Now, Chinese investors are exploring various investment fields.

 

Due to the increasing demand for overseas investment as well as diversity of investment options, more and more Chinese HNWIs are seeking professional financial advice with nearly half of the HNWIs relying on professional managers and consultants for asset allocation. In summary, this new generation of Chinese HNWIs are becoming more globally-minded regarding their selected investment destination.

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