BEIJING: China’s growing population of wealthy people is set to unleash the growth potential of the country’s nascent private banking sector, a report said.
Investable assets of high-net worth individuals in China is expected to grow 15 percent annually between 2015 and 2020 to 102 trillion yuan (US$15.5 trillion), to comprise 51 percent of total investable assets of Chinese, said a report jointly released by Industrial Bank Co Ltd and Boston Consulting Group. Meanwhile the number of high-net worth households is set to rise 13 percent annually to 3.88 million by the end of 2020, making China the world’s largest market for wealth management.
“China’s private banking services currently cover under 20 percent of the wealthy population. There is a huge potential for further development as Chinese banks accelerate to tap wealth management,” said Chen Jinguang, vice president of Industrial Bank.
A survey by the two companies found rising demand among the wealthy to allocate assets to overseas markets, with the proportion of overseas investment to rise from 4.8 percent in 2015 to 9.4 percent in 2020. That would channel around 13 trillion yuan to overseas markets, the report said.
