Wealth Management - China

China

Assets under Management in the Wealth Management market are projected to reach €5,527.00bn in 2024.
Financial Advisory dominates the market with a projected market volume of €5,380.00bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.46%, resulting in a market volume of €5,656.00bn by 2029.

Key regions: United States, United Kingdom, Germany, Hong Kong, Singapore

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Analyst Opinion

The Wealth Management market in China has been experiencing significant growth and development in recent years.

Customer preferences: Chinese customers have shown a strong preference for wealth management products and services. This can be attributed to several factors. Firstly, the rising middle class in China has led to an increase in disposable income, and individuals are looking for ways to grow and manage their wealth. Secondly, there is a growing awareness among Chinese consumers about the importance of financial planning and investment. With a desire to secure their financial future, they are turning to wealth management services for professional advice and guidance. Finally, the younger generation in China is also showing a keen interest in wealth management, as they seek to build their wealth and achieve financial independence.

Trends in the market: One of the key trends in the Chinese wealth management market is the shift towards digital channels. Chinese consumers are increasingly using online platforms and mobile apps to access wealth management services. This trend is driven by the convenience and accessibility offered by digital platforms, as well as the growing tech-savviness of Chinese consumers. Wealth management firms in China are responding to this trend by investing in technology and developing user-friendly digital platforms to cater to the needs of their customers. Another trend in the Chinese wealth management market is the increasing demand for diversified investment products. Chinese investors are looking for a wide range of investment options, including stocks, bonds, mutual funds, and alternative investments. This trend is driven by the desire to diversify investment portfolios and mitigate risks. Wealth management firms in China are expanding their product offerings to meet this demand, and are also providing tailored investment solutions to cater to the specific needs and risk profiles of their clients.

Local special circumstances: China has a unique regulatory environment that impacts the wealth management market. The Chinese government has implemented various policies and regulations to ensure the stability and integrity of the financial system. These regulations include stricter rules on wealth management products, risk management requirements for wealth management firms, and increased scrutiny on the sale and distribution of wealth management products. Wealth management firms in China need to navigate these regulations and ensure compliance while providing innovative and competitive products and services to their customers.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the wealth management market in China. Firstly, China's strong economic growth has created wealth and prosperity, leading to an increase in the number of high-net-worth individuals and affluent households. Secondly, the government's efforts to promote domestic consumption and reduce reliance on exports have resulted in increased consumer spending and investment. This has created opportunities for wealth management firms to cater to the growing demand for financial products and services. Finally, China's aging population and the need for retirement planning have also contributed to the growth of the wealth management market, as individuals seek to secure their financial future. In conclusion, the Wealth Management market in China is experiencing growth and development due to customer preferences for wealth management services, the shift towards digital channels, the demand for diversified investment products, unique local regulatory circumstances, and underlying macroeconomic factors. Wealth management firms in China need to adapt to these trends and circumstances in order to capitalize on the opportunities presented by this growing market.

Methodology

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).