A problem only the rich will ever have: Where to put their money?
But they need not fret, there are a lot of banks who will help them manage their finances so they don’t have to worry about the future, or for that matter, where to invest.
UBS will offer wealthy Chinese the expertise on how to manage their finances to prepare them for retirement, as well as how to make their money last for the next generations to enjoy, according to South China Morning Post (paywall).
The Swiss lender, which plans to open a branch in Shanghai, expects personal wealth in the country to grow more than 15% in the next three to five years, the SCMP said.
But the problem is most of the rich Chinese are not that well versed as far as long-term investments are concerned.
SCMP wrote:
Unlike foreign investors who set long-term investment plans for their core assets for five to seven years, Chinese investors might see an investment period of three years as “very long”, it said, citing Karen Chen, president of UBS (China), as saying.
According to consulting firm Bain & Co., the number of China’s high net worth individuals — those who have individual investable assets in excess of 10 million renmibi, or around $1.6M – exceeded one million last year – twice the number recorded in 2010.
China has an estimated $20 trillion of funds that are sitting idly on its banks, earning very little. This has stirred the interest of global lenders and fund managers who want to take a bite of this enormous opportunity that’s waiting to be tapped.
Photo credit: Jessie Wang via Flickr