Market Insights Financial Wealth Management

Financial Advisory - China

China

Assets under Management in the Financial Advisory market are projected to reach €5.38tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.37%, resulting in a market volume of €5.48tn by 2029.

Key regions: United States, Singapore, Europe, Switzerland, Canada

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Región

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Analyst Opinion

The Financial Advisory market in China has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Chinese customers are increasingly seeking professional financial advice to help them navigate the complex and rapidly evolving financial landscape. With rising incomes and an expanding middle class, individuals are looking for personalized guidance to manage their wealth and plan for their financial future. Additionally, the younger generation is becoming more financially literate and is actively seeking investment opportunities to grow their wealth. As a result, there is a growing demand for Financial Advisory services in China.

Trends in the market: One of the key trends in the Financial Advisory market in China is the shift towards fee-based services. Traditionally, financial advisors in China relied heavily on commissions from product sales. However, there has been a growing recognition of the importance of aligning the interests of financial advisors with those of their clients. This has led to an increasing number of firms adopting a fee-based model, where advisors are compensated based on the value of assets under management or a flat fee for their services. This trend is expected to continue as regulators push for greater transparency and consumer protection in the industry. Another trend in the market is the rise of digital Financial Advisory platforms. Technology has played a significant role in transforming the way financial advice is delivered in China. Online platforms are providing accessible and affordable financial advice to a wider range of customers. These platforms leverage artificial intelligence and big data analytics to offer personalized investment recommendations and financial planning tools. Younger customers, in particular, are embracing these digital platforms, as they are comfortable with technology and value the convenience and cost-effectiveness they offer.

Local special circumstances: China's aging population is creating unique opportunities for the Financial Advisory market. As the population ages, there is a growing need for retirement planning and wealth management services. Many individuals are looking for guidance on how to ensure a comfortable retirement and how to transfer their wealth to the next generation. Financial advisors are well-positioned to provide the expertise and guidance needed to address these concerns.

Underlying macroeconomic factors: China's strong economic growth and increasing household wealth are driving the demand for Financial Advisory services. As the economy continues to expand, individuals are accumulating more wealth and are seeking professional advice to manage and grow their assets. Additionally, the government's efforts to liberalize the financial sector and encourage private investment are creating new opportunities for financial advisors. In conclusion, the Financial Advisory market in China is experiencing growth due to changing customer preferences, such as a desire for personalized advice and a shift towards fee-based services. The rise of digital platforms is also playing a significant role in shaping the market. Local special circumstances, such as an aging population, further contribute to the demand for Financial Advisory services. Overall, the market is driven by China's strong economic growth and increasing household wealth.

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).