In terms of the structure of private investable assets, funds and stock net value slumped by 7 percent and 5 percent respectively between 2009 and 2011, while resident bank wealth management and trust assets grew fast at a compound annual growth rate of 78 percent and 60 percent respectively, the report showed.
Entrepreneurs make up the largest proportion of HNWIs at about 56 percent. Among these nearly 60 percent of the corporations they run are at a mature stage of development. Furthermore, managers, housewives and professionals such as lawyers and doctors and investment professionals are now making up a bigger proportion, according to the report.
Meanwhile, around 59 percent of private banking clients made their fortunes from running a business while the proportion of those investing in real estate declined.
"In the context of interest rate liberation and advancement of financial reform, commercial banks should clarify their private business positioning as soon as possible. In China, the position of private banking should be the service channel for HNWIs," said Richard Huang, a BCG partner based in Beijing. "Its core business should be marketing, product and service integration and coordination of internal and external resources."
According to the BCG survey, private banking clients seem more conservative, with the proportion of clients seeking inflation-proof products increasing from 30 percent in 2011 to 36 percent in 2012. The number holding low-risk investment portfolios rose from 40 percent to 47 percent.
In terms of investment products, more interest is shown in fixed income and trust products (from 57 percent to 65 percent and from 53 percent to 61 percent respectively) while there was less interest in stocks and real estate (from 36 percent and 24 percent to 34 percent and 17 percent respectively).
In terms of other financial products, besides priority transactional services, private banking clients showed more interest in private-banking lending in 2012. In the non-financial value-added services, like the results in 2011, premium healthcare, travel and child education advisory services were most valued.
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