"My observation is that currently it is rare to find innovative products. What tends to be on offer is just another mutual fund. It partly explains why many wealthy people choose offshore investments or put the money in the real estate market, or even in illegal channels such as the usury market," said Chen.
Wang, the Beijing-based wealth manager, said it takes a long time to understand the market for China's HNW individuals, which is just in its infancy compared with that in many developed countries.
"For we professionals in this sector, every day is a new challenge. The demands of clients change rapidly and there is not a textbook that we can just follow," said Wang.
Wang said she herself has seen the changes in the sector in her five-year hands-on experience.
"In the early days we were told to maintain a good relationship by sending text messages during holidays and booking the best restaurants to treat them. Now we focus more on developing services that can really help clients' wealth to grow in a healthy way," said Wang.
The number of HNW individuals is expected to grow about 20 percent annually from 2012 to 2015, reaching around 2 million, and the number of ultra-high net worth individuals (individuals with investable assets of more than 100 million yuan will grow to 130,000 individuals, according to the Minsheng and McKinsey report.
According to a recent report by the Hurun Research Institute, between 2009 and 2011 some 50 percent of HNW individuals' wealth was in cash or deposit accounts.
People in the private banking sector need to delve into the demands and dire needs of China's rich. Although the current situation may not be very satisfying, the market is full of promise and is wide open, said Pan Yingli, professor of finance with Shanghai Jiao Tong University.
For many, it is the start of a golden era.
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