Most Chinese investors don’t trust wealth management agencies
May 7, 2013 Leave a comment
Most Chinese investors don’t trust wealth management agencies
Staff Reporter
2013-05-06
People in China have their own system of wealth management, choosing to keep their own counsel rather than put their trust in professional organizations, valuing gains but ignoring risks, preferring to follow group sentiment and rushing to invest, and being fond of putting their eggs in one basket. These are the major findings of the newly issued Chinese Wealth Management 2013 white paper published by Golden Securities, a wealth management publication.
A survey in the white paper showed that 86.8% of the people surveyed preferred to manage their money by themselves, and only 13.2% of them would commission professional organizations to manage their assets for them. “Many wealth management professionals in financial institutions rarely put clients in an important position, and they rarely care if the products are appropriate for investments or how big the risks are,” said one woman. Even if clients are losing money, they don’t even mention it, she added.Even though many financial institutions’ managers have been conducting risk tests for their clients, they are mostly a formality, and may actually lead to disputes in the future, the report said.
On the other hand, the credibility risk of financial institutions could mean they have a better future if they can improve their services and create a win-win situation.
In the white paper, 44.6% of the people surveyed hope their assets may increase more than 20% annually, 39.5% expect growth of more than 10%, while 16.9% anticipate a growth of higher than the banks’ interest rates. In the survey, 11% said they can endure more than 20% or 30% of losses in the money they invested, 13% can take 10% to 20% of losses, while 76% said they can’t bear risks.
About 38.7% of the people surveyed focused on the property market, 25.3% on trust products, 23.2% on wealth management products offered by banks, 5.2% on stocks, 4.4% on gold, and 3.2% on other products.
China is seeing a growing income gap, and in 2011 the 500th richest person in China had assets of 2.17 billion yuan (US$352 million).
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