Best securities house in wealth management 2020
China International Capital Corp
CICC became a pioneer among securities houses in China when it ventured into wealth management in 2007, setting an example to rivals who have only recently recognized the potential of the wealth management sector.
CICC’s wealth management arm has grown from a team of just 10 in its early days to more than 100 professionals at what it now describes as a one-stop wealth services centre covering trading, investment management, financing and other solutions and services that link wealth management with its strong investment banking franchise.
The number of clients grew 8.6% year on year to 3.27 million in 2019, with 19,000 high net-worth (HNW) individuals whose average assets exceeded Rmb23 million ($3.2 million). Their total account balance at the end of 2019 reached Rmb1.84 trillion, or 42.5% higher than a year ago.
For its HNW clients, the balance stood at Rmb460.3 billion.
CICC, which named Huang Zhaohui as chief executive in December, has the infrastructure to support its large client base and steady growth, boasting a network covering 29 administrative regions, including Hong Kong, with 18 branches and 226 business departments nationwide.
The eye-catching numbers aside, 2019 was an eventful year for CICC. It officially launched the newly branded CICC Wealth Management in October, incorporating the wealth management business founded in 2007, as well as that of China Investment Securities Co (CISC), following a restructuring that started in 2016. To CICC, the integration of the two platforms was a strategic upgrade and marked yet another milestone for the company.
The firm also launched its global family office (GFO), eight months after naming 20-year CICC veteran Liu Man as the head of the business. The 12-member GFO team serves ultra-high net-worth (UHNW) families with over $50 million of assets available for investment. About 30 families, with combined assets exceeding Rmb1 trillion, have already come on board CICC.
Leveraging CICC’s investment banking strengths, the GFO also handled Rmb20 billion worth of equity block trades for 100 listed companies and their shareholders. But providing investment banking services is not the only aim for the GFO, which has also set up family trusts for 60 or so clients since its launch.