Financial Products Are Favored By Overseas Financial Investment To Reduce Risks

With the RMB's accession to the SDR basket of currencies, the degree of internationalization has been further enhanced, and domestic investment income has declined, and so on. More and more wealthy people begin to consider the global allocation of financial assets.

A joint survey by CITIC Bank Private Bank and Hurun Research Institute found that in the past year, China has increased by 130 thousand million billionaires.

The Hurun Research Institute, from a survey of high net worth people with overseas financial investment background, found that "asset allocation and risk diversification" is the most important purpose of their overseas financial investment, accounting for up to 80.3%, followed by wealth preservation and appreciation.

The high net worth group with overseas financial investment background accounts for 54.4% of their total assets, while overseas financial investment accounts for 16.1% of their investment assets.

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Generally speaking, overseas Chinese investors prefer products with stable dividend payouts in the future market, or linked to the exchange rate, index of capital preservation or partial guaranteed products.

The report is entitled "white paper on the demand and trend of China's high net worth population in 2016" (hereinafter referred to as the white paper).

According to the data released, as of May this year, the number of high net worth people with more than 10 million assets in mainland China is about 1 million 340 thousand, an increase of 130 thousand over last year, with a growth rate of 10.7%, and the number of people who can invest more than 10 million of assets is about 683 thousand.

These millionaires are mainly entrepreneurs, gold collar, speculators and professional shareholders, accounting for 55%, 20%, 15% and 10% respectively.

Their assets include fixed assets and current assets.

Fixed assets are classified into listed or unlisted shares, self occupied property and investment property; current assets include stocks, funds, bonds, deposits, insurance, etc.

In addition, the two agencies have launched an investigation into the trend of investment, education, tourism and health care in China's high net worth individuals.

It is found that the attention and demand of overseas financial investment has become a major trend of this group.

The white paper shows that, unlike ordinary people, these high net worth people with millions of wealth need more abroad, such as tourism, shopping, children's education, business, investment and financing, medical beauty, quality environment and so on.

Among the 779 high net worth people surveyed and having overseas experience, their top five needs for overseas were overseas tourism, overseas children education, overseas financial investment, overseas home ownership and

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From the level of wealth, the higher the asset class, the more experienced overseas demand.

According to the survey conducted by the two institutions mentioned above, the foreign exchange deposit is the most common product in their overseas financial investment allocation, with a proportion of 62.9%.

Secondly, insurance accounts for 45%, followed by 41.4% of shares.

It is worth mentioning that women's choice of "foreign exchange deposit", "insurance" and "standard financial products" is significantly higher than that of men, while "support" and "VC/PE" have a more obvious tendency in assets of 1 billion yuan or more, accounting for more than 25%.

People with high net worth generally believe that the biggest challenges encountered in overseas financial investment are "local laws and tax policies" and "investment risk assessment". The ratio of the two is over 50%.

Other challenges include "local information acquisition", "cultural differences", "seeking overseas investment targets" and "acquiring local social relations".

Compared with other intermediary service institutions, banks and other financial institutions are still the target of China's rich people investing in the sea.

When investing, they will also "professional products choose professional institutions to do".

For example, banks choose more foreign exchange deposits and standards.

And gold, in securities, funds, Futures Company choose more are futures, stocks and funds, in insurance, insurance agency selection is focused on insurance, trust companies and family offices choose more are trust and bonds, and the use of personal or own investment group to open overseas companies and art investment more.

In addition, for private banking and other business areas, personalized customized product and service design will be the main trend of overseas financial investment market development.

At present, from the supply side, the suppliers of overseas financial investment products and services generally have a single homogeneity of product service design, and the lack of individualization and differentiation.

In the future, to provide richer products portfolio and investment alternatives for high net worth people, improving personalized and differentiated innovative products and services will be the main trend of the market.