New | UBS eyes growing wealth management needs of China’s rich
Concerns about retirement and inheritance prompt well-heeled Chinese to consider more comprehensive ways to manage their money
Affluent Chinese are making longer-term investment plans and diversifying their assets overseas, says Swiss banking giant UBS, which sees growing wealth management needs in the country.
As many Chinese attain high net worth (assets above US$2 million) or ultra-high net worth (above US$50 million), their wealth management needs are coming into focus as they consider retirement as well as inheritance and succession matters for the next generation, said Karen Chen, president of UBS (China) Limited.
“This affluent class, who are mostly entrepreneurs, are concerned that their wealth will be diluted significantly after several generations if they don’t seriously consider succession planning earlier,” Chen told the South China Morning Post.
Others are considering wealth management as part of their retirement plans, she said.
Unlike foreign investors who set long-term investment plans for their core assets for five to seven years, Chinese investors might see an investment period of three years as “very long”, Chen said.
Concerns about inheritance and retirement are prompting many to consider more long-term, comprehensive wealth management solutions, she said.
China’s entrepreneurs typically invest a large part of their wealth in developing the family business and invest the surplus in the domestic equity market, which they were more familiar with, Chen said.
