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Allen Lo, Deputy Head of Wealth Management, Asia-Pacific, UBS Wealth Management
Monica Wong, Chief Executive, HSBC Private Banking Asia
Stephen Richards Evans, Private Bank Managing Director and Head of Private Bank Greater China, Standard Chartered
Robert Kung, Managing Director, Head of Private Wealth Management in China, Deutsche Bank
Andrew Tung, Managing Director and Global Market Manager, China, Citi Private Bank
James Wang, Head of Onshore Private Banking in China, BNP Paribas
Anuj Khanna, Managing Director and Head of Private Banking North Asia, Credit Suisse |
Asiamoney [AM]: Given the rapid expansion of China's economy, the opportunity for private wealth management must be great. What estimate do you have as to the market's potential?
Allen Lo [AL] , ubs wealth management: China represents one of the most important business opportunities anywhere in the world. It is the second largest wealth management market in Asia with significant wealth creation driven by unprecedented economic growth in recent years. According to the 2007 Asia-Pacific Wealth Report by Merrill Lynch and Capgemini, the number of high-net-worth individuals (HNWIs) in China reached 345,000 in 2006, up 7.8% from 2005. In terms of HNWI wealth in Asia-Pacific, about 20.6% resides in China.
However, the wealth management market in China remains in its infancy, but it can be expected to evolve rapidly, in line with the development and de-regulation of financial markets.
James Wang [JW], BNP Paribas: According to the latest Boston Consulting Group survey, there are 310,000 HNWIs in China with US$1 million or above in liquid financial assets (excluding 220,000 in Taiwan). China is rated fifth in terms of its number of HNWIs after the United States, Japan, the United Kingdom and Germany.
According to Datamonitor Global Wealth Model 2007, the number of wealthy individuals in China is expected to grow 9% (compounded annually) from 2007 to 2011. As a result, the total number of millionaires in China will reach 908,100 by the end of 2010.
Robert Kung [RK], Deutsche Bank: China is a dynamic and ever-changing market. Eighteen months ago we were looking at a total wealth in China of approximately US$1 trillion to US$1.2 trillion. Today, this figure is close to US$1.9 trillion. We anticipate this could reach US$3 trillion three years from now.
Of the US$1.9 trillion, about 27.8% is held by individuals with net worth of US$1 million and above, and they contribute approximately US$530 billion in total wealth. There are about 300,000 to 350,000 millionaires in China.
Andrew Tung [AT], Citi Private Bank: China has a particularly strong entrepreneurial culture, which augurs well for the growth of the wealth management sector, since about 70% of all HNWIs in China are believed to be entrepreneurs. In 2006, more than 70 millionaires were created every day in China.
According to the Boston Consulting Group Wealth Markets in China 2005 report, there are US$1.44 trillion in assets under management among the affluent and high-net-worth segments.
The Capgemini and Merrill Lynch 2007 Asia-Pacific Wealth Report estimated that 28.8% of Asia's ultra-HNWIs are in China. China's HWNI population also grew by 7.8% in 2006 and the country has the second largest pool of wealth in Asia-Pacific.
