China’s wealth management sector needs to accelerate its development and transformation as it faces growing challenges, by moving into different and new areas, such as the global allocation of assets for high-net-worth individuals, leading bank executives said.
At present, only 5 percent of the assets of high-net-worth individuals in China are allocated overseas, compared with the global average of 24 percent. He added that such a huge gap indicated potential for growth.
“Despite China’s tightening of its foreign exchange regulations and our lack of knowledge about overseas markets, we must build a team to study the financial markets of other countries,” she said.
“At the same time, we should look for excellent investment managers overseas for cooperation.”
Furthermore, as China is undergoing a process of a reduction of excess capacity in industry amid an economic slowdown, investment returns in the real economy were falling, while financial risks were on the rise.
“To meet these challenges, the banks must bring their risk controls and their efforts to dig deep for greater returns into better balance,” he said.
At the end of 2015, the balance of wealth management products held by the banks totaled 23.5 trillion yuan ($3.6 trillion), up by 56 percent year-on-year. That accounted for 26 percent of the total balance of 90.36 trillion yuan for wealth management products held by various kinds of financial institutions.
Definition and examples
-Wealth management sector វិស័យគ្រប់គ្រងទ្រព្យសម្បត្តិ
-Move into different and new areas ផ្លាស់ចូលទៅក្នុងតំបន់ថ្មីនិងផ្សេងគ្នា
-Global allocation of assets ការបែងចែកទ្រព្យសម្បត្តិជាសកល
-High-net-worth individuals បុគ្គលដែលមានទ្រព្យសម្បត្តិច្រើន
-Allocate something overseas បម្រុងទុកអ្វីមួយនៅក្រៅប្រទេស
-Huge gap គម្លាតដ៏ធំ
-Tightening of its foreign exchange regulations ការរឹតបន្តឹងបទប្បញ្ញត្តិនៃកាប្តូរប្រាក់បរទេសររបស់ខ្លួន
-Build a team to do something កសាងក្រុមដើម្បីធ្វើអ្វីមួយ
-Undergo a process of a reduction ឆ្លងកាត់ដំណើរការនៃការកាត់បន្ថយ
-Meet these challenges ដោះស្រាយបញ្ហាប្រឈម
-Dig deep for greater returns into better balance ជីកជ្រៅដើម្បីអោយបានមកវិញនូវតុល្យភាពមួយល្អប្រសើរជាងមុន
Translated and taught by Sin Sidara