According to Credit Suisse's "2019 Global Wealth Report", as of mid-2019, China has 100 million people in the top 10% of the world in wealth, surpassing the United States for the first time, with 99 million people in the latter.
Through this report, high-net-worth individuals can deal with their family wealth management problems more calmly.
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The household assets of high-net-worth individuals are between 6 million and 10 million yuan as the threshold for reaching the standard, and about 60% of the investable assets of high-net-worth households are in this range.
More than 10 million yuan shows an exponential distribution of wealth and the number of people. The proportions of 10 million to 30 million yuan, 30 million to 100 million yuan, and 100 million yuan or more are 27.9%, 9.8%, and 2.7%, respectively.
The source of wealth for high-net-worth individuals
The sources of wealth for high-net-worth individuals are the top three in order of starting a company (39.0%), wages and other labor income (21.9%), and real estate investment profits (13.4%).
In line with the public’s intuitive impression, the probability of Chinese people buying a house to create wealth is much higher than that of buying stocks. This is reflected in the source of wealth of high-net-worth individuals, that is, the proportion of high-net-worth individuals who rely on real estate investment and rely on stock investment. 4.6 times the population (2.9%).
Occupational distribution of high-net-worth individuals
Entrepreneurs are the absolute majority of China's high-net-worth individuals. In most traditional industries, especially manufacturing, the main composition of high-net-worth individuals is entrepreneurs. In 2008, China entered a middle-income country, and the proportion of high-value-added industries in the social economy began to rise sharply. In terms of occupation, it is corporate management, as well as some non-management and business service professionals. Begin to enter the sequence of high-net-worth individuals through the routine career development path in batches. L visa is suspended, the market focuses on E-2 visa
The wealth view and investment view of high net worth individuals
High-net-worth/new middle-class wealth perception of value: Is wealth an important criterion for measuring personal value?
In terms of the value of wealth, the high-net-worth population and the new middle-class population are close to isomorphism. The average recognition and high recognition (above 6 points) ratio of the two groups of people is not much different. The high-net-worth group is 6.81 points and 73.3%, respectively, and the new middle-class group is 6.35 points and 65.8%.
Whether it is a high-net-worth group or a new middle-class group, they all believe that wealth is of great significance to the expression of personal value. This is the universal characteristic of high-net-worth individuals in terms of wealth.
The investment and financial style of high-net-worth individuals
Although the economic situation is not easy, the investment returns of high-net-worth individuals in the past year have generally met expectations. Moreover, most of them believe that in the coming year, family wealth will continue to grow at a relatively steady rate.
High-net-worth individuals rely heavily on small circles (private financial advisors and social circles) for decision-making reference. In the way of managing their wealth, the main way for high-net-worth individuals is to listen to suggestions, but self-management, which is the same as entrusting professional institutions. There are considerable differences in managed management.
As wealth has reached a certain scale, the household debt-to-asset ratio of high-net-worth individuals is very low, nearly 40% have no household debt, and more than 40% have a debt ratio of more than 10%.
In terms of investment and financial management, the macro environment that high-net-worth individuals are most concerned about includes the economic environment and the international political environment, followed by the frequent lightning incidents in the last 1-2 years. The value of a strong passport has truly become a global trend
It is foreseeable that with the further deepening of "de-justification", the similar troubles of high-net-worth individuals will not decrease in the next few years.
The vast majority of high-net-worth individuals are optimistic about China's economic transformation and further development.
Overseas assets are a type of high-net-worth group of assets that will greatly increase. However, in terms of the overall asset structure of the family, "domestic-based, foreign-assisted" is still the mainstream, and the distinction between primary and secondary is quite obvious. The reasons for the allocation of overseas assets are mainly risk diversification and actual use needs (children's education and overseas immigration), followed by high returns.
The choice of wealth management institutions for high-net-worth individuals
Finance management has become a habit, a conscious way of life. When most families put financial awareness into practice, in the face of the rapidly changing wealth market, "let professional people do professional things" increasingly become people's consensus. They began to choose professional wealth management institutions to tailor their asset allocation plans, and this proportion reached 71.4%. The group that delegates more than half of their wealth to institutions also accounts for 36.2% of all.
As an important component of the middle-class asset allocation method, institutional financial management is already an option that has entered the field of vision of most people. The professionalism of institutions can often help individuals or families to reduce the interference of subjective and objective factors when managing financial affairs.
It is best not to put eggs in the same basket. There are many wealth management institutions in the market. How to judge and select the most suitable and trustworthy institution is the primary issue.
The so-called too much is too late. Cooperative institutions are more or less easily biased. The income of wealth management is not directly related to the number of cooperative institutions. How to control the delicate balance between risk and return?
86.7% of the people choose between 1 and 4 institutions, and only a very small number of people will contact more than 5 institutions at the same time.
Regarding the types of wealth management institutions, it is not difficult to see from the survey data that up to 81.1% of people choose third-party wealth management institutions. Nearly 30% of people will choose private banks or brokerage/insurance asset management institutions. These specialized institutions have the highest "photograph rate" in the field of wealth management and have a relatively good foundation of trust, so they have become the choice of most people. There are also less than 5% of people set up a "family office" to coordinate asset allocation matters in an organized way.
In this era, the second passport goes from luxury goods to necessities
The most direct purpose of wealth management is wealth appreciation. In the process of selecting wealth management institutions, professionalism has become the primary criterion. And to judge professionalism, the organization's brand and investment return satisfaction are the two most critical indicators. Nearly half of them also consider factors such as the organization's privacy, management practices, and customer manager services. Obviously, in order to be recognized by customers, organizations must continue to evolve to improve the professionalism and effectiveness of services in all aspects.
The wealth inheritance of high-net-worth individuals
In China, wealth often persists in the unit of family. "It is not richer than three generations" like a curse that makes some people worry about it. Therefore, the particularity of family financial management is also valued by wealth management institutions, which has evolved more targeted wealth management strategies.
Among the ways that may be considered in the future, wills, family trusts, family wealth offices, corporate equity or management rights are the choices of most people. In addition to general operations such as buying a house and buying insurance, more rich and professional family wealth inheritance plans are gradually being accepted by people.
Just as "preparing for a rainy day" is a commendatory term in the eyes of most people, as many as 72.2% of people have already considered the systematic arrangement of family wealth inheritance. 32.2% of people will start in the next three years, and 18.9% will make arrangements after four years and a longer period of time.
Wealth management services sought by high-net-worth individuals
The type of wealth management services is not only a manifestation of institutional capabilities, but also related to the vital interests of ordinary people. What kind of services are closer to people? Data can best reflect the voice of the market. For example, nearly 70% of people hope that wealth management institutions can provide high-quality competitive products. They also generally show their plans and recommendations for asset allocation interest.
In addition, a wealth of product types and household financial services other than investment and financial management are also the focus of attention.
As the Chinese economy has entered a new normal, the proposition of "wealth" faced by the Chinese has also been updated to a new version. In the past, wealth was mostly an incremental proposition in the eyes of Chinese people; now, the amount of wealth of Chinese people is considerable. While the increase is important, the stock is also important, or even more important.
Some high-net-worth individuals will personally take care of family/family wealth, but more people will choose wealth management institutions to handle the corresponding affairs-at least part of the affairs of wealth. The concept of "wealth management, let professional people do professional things" has been widely accepted.
Looking forward to the next five years, the scale of high-net-worth individuals will further grow, which means that wealth management has broad development prospects in the future. The needs of high-net-worth individuals for wealth management will also become more diversified. In addition to more conventional and traditional matters such as family wealth protection and inheritance, and long-term value-added of family assets, they also need more wealth-related services, including children’s education and training, high-quality life, family tax planning and consulting, and family business Investment and financing services, allocation of overseas assets, etc., also require wealth management institutions to provide higher-level services.