Aerial photo taken on June 21, 2018 shows the morning view of the Lujiazui area in Pudong, east China's Shanghai. (Xinhua/Ren Long)
BEIJING, April 13 (Xinhua) -- The Chinese market of the wealth management industry is looking at growing scale in the future, according to a recent report by KPMG, reported Economic Information Daily on Monday.
Citing data from a study by Goldman Sachs, the KPMG report points out that the total investable assets of Chinese residents by 2020 reached 31 trillion U.S. dollars. The figure is expected to maintain double-digit growth rates in the next five years, reaching 50 trillion U.S. dollars by 2025, according to the report.
At the same time, the asset of all kinds of asset management products in China's wealth management market has totaled 104 trillion yuan (about 16.338 trillion U.S. dollars) by 2020. With an expected compound annual growth rate of 11 percent, the report indicates that the figure will grow to 25 trillion U.S. dollars by 2025.
The wealth management industry holds lasting growth potential, especially for emerging markets like China, said Zhang Chudong, managing partner of KPMG China's financial industry, noting that the main driving factors include increasing household and business wealth and the trend of wealth transfer between generations.
As the market scale expands, asset allocation structure of households and management strategies of wealth management institutions have also changed. The report shows that household asset allocation is gradually shifting from real estate and other physical assets to financial assets. Wealth management institutions are building the industry's ecosystem centered on customer needs to provide all-stage services and promoting digital transformation to cope with new challenges in the market, according to the report.
(Edited by Yu Huichen with Xinhua Silk Road, yhc0267@163.com)
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