Although Chinese economic growth has been slowing down, the number of Chinese high net worth individuals (HNWIs) is expected to grow to 3.88 million by 2020, says a report titled China's Private Banking 2016: HNWIs' Robust Needs for Overseas Asset Allocation amid China's Moderate Economic Growth.

With the deepening of China's economic globalization, the Chinese HNWIs's demand for overseas asset allocation is on the rise. The ratio of overseas asset allocation for Chinese HNWIs is expected to go up from 4.8 percent to 9.4 percent, which means 13 trillion yuan might be allocated for overseas investment in the next five years, the report predicts. 

Given the volatility of the Chinese stock market, the falling interest rates, the movement of the RMB exchange rate and the market segmentation in China's property industry, Chinese HNWIs chose to adjust their allocation for overseas investment in 2015. The fluctuations in Chinese stock increases HNWIs' awareness of risks and the falling interest rates drive their need for diversified investment. In addition, the reform of the RMB exchange rate helps HNWIs look for overseas investment. Furthermore, the volatile yields in China's segmented property market encourage these Chinese HNWIs to hold more financial assets when it comes to asset allocations. 

Nearly 30 percent of those surveyed amongst the HNWIs have overseas assets for the time being. Among those HNWIs without any overseas investment, 56 percent say that they may make overseas investment in the next three years.

China's Private Banking 2016: HNWIs' Robust Needs for Overseas Asset Allocation amid China's Moderate Economic Growth was released by Industrial Bank and Boston Consulting Group on June 22, 2016.