Challenges to the Wealth Sector in India and China

Published: January 2012
No. of Pages: 50
  

Synopsis

This report is the result of WealthInsight’s extensive research covering the HNWI population and Wealth Management industry in India and China.

Summary

China and India are the two largest emerging markets in the world. In addition to providing a comprehensive and robust background of these two economies, including, uniquely, detailed analysis of economic and political risks to HNWI wealth creation, the report provides robust projections of the volume and wealth of HNWIs in both countries. The report then reviews these findings in an analysis of each country’s Wealth Management and Private Banking sector.

Scope

The report features:

  • Independent market sizing of China’s and India’s HNWI
  • Volume and wealth trends from 2007 to 2011  
  • Volume and wealth forecasts to 2015
  • Details of the development, challenges and opportunities of the Wealth Management and Private Banking sector in China and India
  • Family office information

Reasons To Buy

  • The WealthInsight HNWI Database is an unparalleled resource and the leading database of its kind. Compiled and curated by a team of expert research specialists, the HNWI Database comprises up to one hundred data-points on over 100,000 HNWI around the world. With the HNWI Database as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI universe in each of the countries and regions we cover.
  • Comprehensive forecasts to 2015.
  • Information on sources of wealth for HNWIs in each major city, by industry and other measures.

Key Highlights

  • India currently has the fourth-highest number of HNWIs in the Asia-Pacific region after Japan, China and Australia. In 2011, there are 251,000 HNWIs in India who, together, hold a total of US$1,083 billion. Going forward, the number of Indian HNWIs is expected to grow by 85% to reach close to 465,000 individuals in 2015. HNWI wealth is expected to grow by 97% to US$2,134 billion in 2015.
  • There are currently 1.3 million HNWIs in China with a combined wealth of US$4.3 trillion, which equates to 26% of the total wealth held in the country. WealthInsight expects HNWI wealth to increase at a CAGR of 14.7% over the forecast period to reach US$7.5 trillion in 2015, while volume will grow at a CAGR of 13.5% to reach over 2.1 million in 2015.
  • Our research shows that over 50,000 Chinese HNWI are looking to move abroad each year. Indeed, much of the frothiness in Hong Kong’s property market is due to demand from Chinese HNWI, who buy luxury homes in Hong Kong in order to gain Hong Kong citizenship.

Challenges to the Wealth Sector in India and China

Table of Contents

1 Introduction
1.1 What is this Report About?

2 Wealth Sector Fundamentals
2.1 Economic Background to the Wealth Sector in India
2.2 Economic Background to the Wealth Sector in China
2.3 Political Background to the Wealth Sector in India
2.4 Political Background of the Wealth Sector in China
2.5 Benchmarking Indian Wealth in Context
2.6 Benchmarking Chinese Wealth in Context
2.6.1 Distribution of wealth
2.6.2 Alternate scenarios for China’s economy to 2015

3 Competitive Landscape of the Wealth Sector in India
3.1 Competitive Structure
3.2 Wealth Managers and Private Banks
3.2.1 Wealth managers
3.2.2 Private banks
3.2.3 Foreign banks and MNCs
3.2.4 Joint ventures
3.2.5 Domestic providers
3.3 Leading Companies in the Wealth Management Industry
3.4 Family Offices
3.4.1 Multi-family offices
3.4.2 Single-family offices
3.5 Trusts
3.6 Challenges and Opportunities for the Wealth Sector in India
3.6.1 Regulatory
3.6.2 Tax
3.6.3 Human resources
3.6.4 Move to self-management
3.6.5 Underdeveloped product offerings
3.6.6 Demands of intergenerational wealth transfer and younger clientele
3.6.7 Philanthropy

4 Competitive Landscape of the Wealth Sector in China
4.1 Competitive Structure
4.2 Wealth Management and Private Banking Industry – A Paradigm Shift
4.3 Wealth Management and Private Banking Industry – Competitive Structure
4.4 Wealth Managers and Private Banks
4.4.1 Wealth managers
4.4.2 Private banks
4.4.3 Foreign banks and MNCs
4.4.4 Joint ventures
4.4.5 Domestic providers
4.4.6 Trusts
4.5 Leading Companies in the Wealth Management and Private Banking Industry
4.6 Family Offices
4.6.1 Multi-family offices
4.6.2 Single-family offices
4.7 Offshore Wealth Management and Private Banking Industry
4.8 China Wealth Management and Private Banking Industry – Behavioral Mapping
4.9 Challenges and Opportunities for the Wealth Sector in China
4.9.1 Regulatory Environment
4.9.2 Tax
4.9.3 Human capital
4.9.4 Move away from self-management
4.9.5 Underdeveloped product offerings
4.9.6 Demand for intergenerational wealth transfer and younger clientele
4.9.7 Philanthropy
4.9.8 Business development the Chinese way

5 About WealthInsight

List of Tables

Table 1: HNWI Wealth Band and Group Definitions
Table 2: Regional Definitions of China
Table 2: HNWI Wealth Sector Market Attractiveness of India, 2007–2015
Table 3: Wealth Management Industry – Main Companies Operating in India
Table 4: Wealth Management Industry – Major SFOs and MFOs Operating in India
Table 5: Major Companies in China’s Wealth Management and Private Banking Industry

List of Figures

Figure 1: HNWI Wealth Sector Market Attractiveness of India, 2007–2015
Figure 2: HNWIs – India vs RoW and Asia-Pacific
Figure 3: HNWIs Wealth Sector Market Attractiveness of China, 2007–2015
Figure 4: HNWIs – China vs RoW and Asia-Pacific
Figure 5: Wealth Management Industry of India – Structure
Figure 6: Wealth Management Industry of China – Structure
Figure 7: Offshore and Onshore Wealth Management Segments in China
Figure 8: China Wealth Management Industry – Behavioral Mapping, 2011

Published By: WealthInsight
Product Code: WealthInsight7


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