Trend Analysis - 20 August 2020

Inside the Mind of a chinese high net worth individual: Trends in Investments, Lifestyle, UK, Singapore and Trust

China is the world’s second-largest wealth market, with the largest number of people in the top 10% of global wealth distribution. What happens in China influences many other parts of the world.

How are the wealthy in China reacting to the coronavirus pandemic? Has COVID-19 changed their investment portfolios? Are they concerned about an economic slowdown following COVID-19? Do they think that the UK and Singapore are still good choices for their investments? How can individuals build trust with Chinese HNWIs in this uncertain time?

Thirteen experts including Hawksford's Private Client Services Director, Alice Quek and Chief Operating Officer, Peter Zhu share their insights on investments, lifestyles, and the importance of trust.

Key findings:

  1. Chinese HNWIs are generally concerned about an economic slowdown, but this does not mean that they will cut or reduce their spending on lifestyle choices.

  2. Health is the real wealth for Chinese HNWIs. Wellness is the big new trend. Quality of water, air, energy, and mental wellness matter to them.

  3. Chinese HNWIs’ investment strategies for 2021 include increased investment in Chinese firms, and the Chinese private healthcare and technological sectors, as well as integration of environmental, social and governance (ESG).

  4. Despite ongoing Brexit negotiations and COVID-19, the UK remains a top choice for Chinese HNWIs deciding on where to pursue their investment goals and lifestyle aspirations. The ongoing trade war between the US and China has discouraged many Chinese HNWIs from investing in the US, and this capital is being rerouted to the UK.

  5. Despite COVID-19, Singapore remains a top choice for Chinese HNWIs looking to carry out their investments in the Asian region. Chinese HNWIs will continue to choose Singapore to set up family trusts for succession and legacy planning.

  6. To gain trust with Chinese HNWIs, it is crucial to understand traditional Chinese values that prioritise honour and trustworthiness in any relationship, and that promote the idea that “we must become friends first before we do business”.

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