High-net Worth Individuals in China Exceed 1.3 Million: Private Banking Report

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A report on private banking in China indicates that the number of high net-worth individuals in the country now exceeds 1.3 million.

The number of high net-worth individuals in China increased 6.6% in 2019 to reach 1.32 million, according to the “China Private Banking Development Report (2020) and China Wealth Management Sector Risk Management White Paper” (中国私人银行发展报告(2020)暨中国财富管理行业风险管理白皮书), released by the Chinese Banking Association in conjunction with the Tsinghua University People’s Bank of China School of Finance.

According to the Report China’s high-net worth demographic has become a “strong engine” for driving growth in the Chinese wealth management sector.

The assets of under management (AUM) of China’s wealth management sector exceeded 100 trillion yuan, making it the world’s largest.

As of the end of 2019 China’s bank wealth management assets reached 23.4 trillion yuan, for YoY growth of 6.17%.

Trust assets stood at 21.6 trillion yuan, for a YoY decline of 4.85%, while insurance assets reached 2.056 billion yuan, for YoY growth of 12.2%.

The AUM of publicly offered funds were 14.77 trillion yuan, for YoY growth of 13.29%, while for privately offered funds the figure was 14.31 trillion yuan, for a rise of 10.78%.

Special account wealth management assets of fund companies and their subsidiaries stood at 8.53 trillion yuan, for a YoY decline of 24.5%, while brokerage AUM were 10.83 trillion yuan for a YoY decline of 18.9%.

Futures company AUM reached 142.9 billion yuan, for a YoY rise of 12%.

The AUM for private banking services offered by Chinese lenders rose to 14.12 trillion yuan, for an increase of 15.75% compared to the 2018 figure of 12.2 trillion yuan.

The number of private banking clients in China reached 1.0314 million, for an increase of 18.96% compared to 866,900 in 2018.

The five leading providers of private banking services in China – each with over 1 trillion yuan of assets under management, were ICBC, Agricultural Bank of China, Bank of China, China Construction Bank and China Merchants Bank.

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