Private Banks in China Have Growth Pains
Private Banks and Growing Pains.
A Private Bank in China
Where in the world can this be happening? Only one place…China of course. So far, this one country where the supply of millionaires outstrip the supply of private banks.
Imagine having an average of 70 millionaires (based on at least $US 1M) being created per day. Most foreign private banks face the tripple whammy of:
1) Not having enough qualified wealth managers on staff,
2) Not having enough offices to service the numbers of current and new millionaires,
3) Not having enough mature and varied products to offer their clients.
The exchange rates and system in China is still highly regulated and restrictive to allow too many products on offer compared to more mature markets like Singapore, Japan and Hong Kong.
Well, this might not be too bad a problem as the private banking wealth management industry is really only a fledgling industry in China. Growing pains are a part of growth. But, as in all things business in China, growth and new industries are met with caution by the authorities. Which is not necessarily a bad thing. Afterall, just look at the tremendous progress that China has already experienced, with a good spread of the numbers of millionaires.
China is likely to surpass Japan (with 1.4 million HNWI worth US $3.5Trillion) by 2015 predicts Johnson Chng of Bain and Co. Currently China has 320,000 millionaires worth US $ 1.6 Trillion and growing fast.
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We i think china have a strong strategy about it’s bank sector, because recession is all over the world. No one who have not get affected with it. So if it is really working properly in this time so it’s very good for their people.