White paper on demand management of China’s high net worth population in 2020 From Hurun Research Institute

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The following is the White paper on demand management of China’s high net worth population in 2020 From Hurun Research Institute recommended by recordtrend.com. And this article belongs to the classification: User Research.

The white paper shows that in terms of wealth management, the financial investment enthusiasm of high net worth people increased by 67% after the epidemic; when choosing financial investment products, the proportion of valuing investment income increased by a quarter compared with last year, from 58% to 73%. It is worth noting that the enthusiasm for global asset allocation has faded, and 30% of high net worth people say that global asset allocation will be reduced in the future. In terms of allocation areas, Hong Kong surpassed the United States to become the preferred destination for global investment of high net worth people, with the proportion increased from 40% last year to 45%; the enthusiasm for investing in the United States has decreased by nearly 50% in the four years of Trump’s administration, from 75% to 40%, but the proportion still exceeds the sum of Britain, Japan, Switzerland and France. In terms of children’s education, 26% of the families who are studying abroad choose to postpone studying abroad, and 70% choose to continue to complete their studies. It is worth noting that the enthusiasm for studying abroad in young age is cooling down, and the willingness to study abroad in senior high school has dropped by 50%. The proportion of studying abroad in graduate stage (41%) is 8 times higher than that of last year, rising to the highest level in the past five years; the average age of studying abroad is 21 years old, 3 years higher than that of last year. In terms of health management, medical and health services (72%) became the most preferred non-financial services for high net worth people. In terms of travel, more than 50% of high net worth people have travel plans after the outbreak, 34% choose domestic travel, Yunnan (22%) become the first domestic travel station they prefer, followed by Hainan (21%), and Shanghai ranks third (9%).

“Finance is the barometer of the national economy, and the financial industry is the core sector of the national economy. Facing a series of challenges and opportunities at home and abroad since this year, financial institutions should co-exist with enterprises, fully integrate into the national development strategy, make every effort to increase investment in financial science and technology, and fulfill their due social responsibilities. In order to actively respond to the impact of this new economic normal and the superposition of the epidemic situation, China CITIC Bank Private Bank, together with Hurun Baifu, compiled the white paper on demand management of high net worth population in China 2020, aiming to provide more useful reference for all sectors of society. The private bank of China CITIC Bank adheres to the customer service orientation, grasps the trend and meets the demand, actively carries out strategic layout in the fields of wealth inheritance, scene ecological construction, financial technology integration and other fields of high net worth people, and is committed to providing customers with comprehensive financial service solutions in the Trinity of individual, family and enterprise. “

Hurun, chairman and chief research officer of Hurun Baifu, said: “2020 is the fastest year of wealth creation since the 22 years of Hurun Baifu list. The total wealth of entrepreneurs on the list has increased by nearly one billion billion yuan compared with last year, and more than the total increase in the previous five years. It can be said that the past two decades have witnessed rapid wealth accumulation, and the next two decades will be the two decades of wealth management. I am very pleased to jointly issue with China CITIC Bank Private bank the “white paper on the exploration, initiative and renewal – demand management of China’s high net worth population in 2020”. I hope this white paper can help high net worth people and institutions serving them understand the change trend of wealth management and non wealth management in the post epidemic era, including children’s education, health management and travel. “

Hurun believes that 2020 is a year of opportunities and challenges. At the beginning of the epidemic, the global stock market plummeted, then the V-shaped recovery, the global central bank’s water release and various economic stimulus policies promoted the emergence of many new financial investment opportunities, but at the same time, the global epidemic situation is still uncertain. This year, we all attach great importance to the safety and liquidity of assets in order to quickly cope with various uncertainties. “From the perspective of global investment trends, entrepreneurs say that due to the uncertainty of the international macro environment, they will reduce global investment and return to China. According to the white paper, Hong Kong, China has become the preferred destination for high net worth people to invest in the world. An obvious example is the return boom of China capital stocks in recent years, that is, many Chinese enterprises which were originally listed in the United States seek to be listed twice in Hong Kong, China, Alibaba last year, Netease, Jingdong, Zhongtong express, etc. There are also many new companies that choose to list in Hong Kong, such as Nongfu Shanquan. “

“The financial investment enthusiasm of high net worth people is 67% higher than last year, which makes me feel like a bull market.”

“These high net worth people are worthy of your attention because they are more ahead of the trend of wealth.”.

“The white paper also studies current hot topics, such as studying abroad. The survey found that most of the families who are studying abroad choose to continue to complete their studies. Nowadays, many overseas students do not return to school and continue to complete their studies by online teaching, which is reversed day and night. However, many families who plan to study abroad choose to postpone their study abroad, but the proportion of cancelling the plan is very low. This shows that international education is still a just need for children’s education of high net worth people, “Hurun added.

White paper core findings

2020 is a new stage of a long-term slowdown in economic growth. Loose monetary policy, the “anti globalization” contrary to economic globalization and the impact of epidemic situation will affect the trend of global economy. In this context, what are the trends of financial demand and non-financial demand of high net worth population?

Entrepreneurs are relatively optimistic about the medium and long term. They believe that the trend of economic stabilization and recovery and the improvement of enterprise profits has not changed. Nearly 40% of entrepreneurs believe that their performance will maintain growth in 2020, and 20% of them expect their revenue to be the same as that in 2019.

In fact, short-term risk events have not changed the asset allocation logic and long-term life planning of high net worth people. They believe that China’s economy leads the world in a steady recovery, and that Chinese assets will still be pursued by global capital, which will be a long-term trend.

Financial demand trend change: where: where to allocate?

The enthusiasm for global asset allocation has faded, and the future will remain wait-and-see or further shrink. The global economic uncertainty is increasing due to the epidemic situation, and the global allocation of high net worth population will be weakened in the future. Judging from the trend of global financial investment, 30% of high net worth people will choose to reduce global financial investment in the future, and 50% of high net worth people will keep a wait-and-see attitude. From the perspective of global non-financial asset allocation trend, the proportion of international real estate sales also rose to 32%, three times that of 2019.

Hong Kong has become the preferred destination for cross-border asset allocation, while the attractiveness of the United States, the United Kingdom and Australia has declined significantly. In the post epidemic era, Hong Kong, China has surpassed the United States as the most popular destination for cross-border asset allocation. The proportion of people who choose to choose the United States has increased from 40% last year to 45%, and the proportion of people choosing the United States has dropped from 61% to 40% last year. The enthusiasm for investing in the United States has declined by nearly 50% during Trump’s four years in office, but the proportion still exceeds the sum of Britain, Japan, Switzerland and France.

What: what to configure?

More than half of high net worth households prefer financial assets, and the higher the asset grade, the higher the proportion of financial assets. 56% of the high net worth people’s financial asset allocation ratio is more than 50%, and 50 million is the inflection point of high net worth household asset allocation. When the asset exceeds 50 million, the proportion of financial asset in asset allocation begins to increase significantly. Among the high net worth people with total assets of more than 100 million, 65% of the households have allocated more than 60% of their financial assets (equivalent to allocating more than 60 million yuan of financial assets).

After the outbreak, financial investment enthusiasm increased by 67% compared with last year. The allocation enthusiasm of savings and cash (86%), stocks (84%), funds (78%), insurance (57%) and financial products (54%) increased.

Financial assets: diversified allocation, balanced risk characteristics are prominent, and will continue in the next year. Multiple allocation shows the characteristics of “4321”: 40% of high net worth people plan to increase income type investment, including stocks and stock funds in secondary market, as well as stock rights, real estate objects and funds and collectibles in the market; 30% plan to increase stable investment, including pension, children’s education fund, mainly trust, bond, bond fund, etc.; 20% plan We should increase security investment, i.e. consumer insurance, to resist the risks of families and enterprises; 10% plan to increase short-term fixed expenditure, that is, to pay for short-term consumption and debt, and to maintain the part of daily expenses of families and enterprises. Balanced risk is reflected in the significant increase of insurance asset allocation.

Real estate: more than 50% of the high net worth people have a home purchase plan in the coming year. As a stable asset maintenance type, real estate allocation is still favored by high net worth people, especially in the first and second tier cities in China.

How: how to choose financial institutions?

The selection criteria of financial institutions have changed from “industry status and professionalism” to “security and meeting individual needs”. Security (55%) has risen to be the primary investment standard for choosing financial institutions, while the emphasis on professional level (46%) and industry status (45%) of institutions has declined significantly for the first time since 2016.

Non financial demand:

The demand for international education, as a medium and long-term plan for high net worth families, has not changed. The epidemic situation will not change the study abroad plan, but it may delay the study abroad stage, and domestic and international schools may become the transition station. For those families who are studying abroad, more than 70% choose to continue to complete their studies, and 26% choose to suspend studying abroad. For families planning to study abroad, more than 90% of the families will not cancel the study abroad plan, but the study time will be postponed.

The enthusiasm for studying abroad at young age has cooled down, and the willingness to study abroad in senior high school has dropped by 50%. The proportion of students studying abroad at the graduate stage (41%) is 8 times higher than that of last year, rising to the highest level in the past five years.

The United States (56%) and the United Kingdom (44%) are still the preferred countries for Chinese high net worth families to study abroad, while Canada’s attraction is declining. In terms of major selection, business (58%) was the most preferred subject, followed by mathematics / computer major (31%).

What are the emerging needs of high net worth people in the post epidemic era?

“Health first” has become the first life goal of high net worth population after the epidemic, and health management is becoming younger. In the post epidemic era, medical and health services (72%) became the most desired non-financial services for high net worth people. Young people aged 25-35 are more willing to experience the medical and health services provided by private banks. It should be noted that tax or legal consultation involving individuals or families of high net worth people has become an emerging demand, mainly based on the regulatory trend of tax information transparency (such as the implementation of the new tax law, common reporting standard CRS).

High net worth people showed strong interest in high-end physical examination projects. Cancer screening (66%) was the most interesting physical examination item for high net worth population, followed by genetic testing (59%). Chinese mainland is the most popular destination in China, accounting for 67%, followed by Hongkong, China (41%).

CITIC wealth forum 2020

With the theme of “CITIC temperature and win-win future”, the 2020 CITIC wealth forum explores the demand changes of wealth groups in 2020. In addition to publishing the white paper on demand management of high net worth population in 2020, jointly prepared by CITIC Bank Private Bank and Hurun Research Institute, outstanding entrepreneurs from different fields and industries were invited to hold a round table forum, and famous experts and scholars in the financial field were invited to give lectures on investment and financing suggestions.

research method

The research results of the white paper on demand management of high net worth population in 2020 come from the joint project of CITIC Bank Private Bank and Hurun Baifu

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In terms of research methods, the project team adopts a combination of quantitative and qualitative research methods to ensure the depth and breadth of research. In order to ensure the authenticity and representativeness of the survey results, the project team, relying on the Hurun Baifu high net worth population sample library, conducted stratified random sampling from May to September 2020 according to the dimensions of gender, age, region, total household assets, and demand experience, and conducted a quantitative research on 360 typical high net worth population representatives in the form of one-on-one special questionnaire interview, and the samples covered the major national areas 1、 Second tier cities. On this basis, the project team invited more than 180 high net worth people from different industries to conduct qualitative interviews to explore the impact of the epidemic on their life goals and enterprise development, with a view to more extensive and in-depth excavation and Research on the demand changes of China’s high net worth population in the post epidemic Era.

Since the white paper issued by CITIC Bank Private Bank and Hurun Baifu in 2016, it has focused on the high net worth group and entrepreneur groups, has insight into their financial and non-financial needs, and has accumulated rich first-hand research information. Over the past five years, we have tracked 2863 high net worth people (including special quantitative research and qualitative interviews), and continuously observed 3000 + listed entrepreneurs (including Hurun 100 rich list and series of sub lists). The information disclosed in the white paper is true and detailed, and continuous research mining, insight and creation of huge trend value.

Read more: Hurun Research Institute: 2017 China high net worth population health index white paper (attached download) Hurun Baifu: 2016 Chinese high net worth population medical care white paper (download) Hurun Research Institute: 2018 Chinese financial planner white paper (download) Hurun Research Institute: 2018 Hurun China investment immigration white paper (download) Hurun Research Institute: 2018 China new middle class white paper Hurun Research Institute: white paper on Chinese alcohol consumption behavior in 2019 (download attached) Hurun Research Institute: 2014 white paper on luxury tourism in China The number of high net worth people in Russia amounts to 293000 Hurun: 2017 white paper on whisky consumption of China’s high net worth population (download attached) wealth-x: report on global high net worth population in 2020

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