Top Biz News

Banks eye on wealthy entrepreneurs

(chinanews.cn)
Updated: 2006-10-09 17:25

As the deadline for China to fully open its financing sector comes near, foreign banks are stepping up efforts to expand their business in China. Their most ideal customers are those whose family assets are worth over 50 million US dollars, 60% of them private entrepreneurs in Zhejiang Province.

With Chinese economy growing stronger, foreign banks have their eyes on the finance management market in China. According to related information, in China there are about 3 million families whose family assets are worth over 100,000 US dollars. Meanwhile, there are about 300,000 people in China whose current assets (including cash, stock shares, and houses for non-residential purposes) exceed one million US dollars. It is expected that by 2009, the total amount of current assets for Chinese wealthy families will increase from 825 billion US dollars in 2004 to 1.606 trillion US dollars by then, nearly doubling the number.

Facing such a lucrative market, many foreign financial institutions are beginning to take action. According to a survey by the international consulting firm MacKinsey, big foreign banks in China, such as UBS, HSBC, and Standard Chartered Bank, have already eyed on the 3 million potential customers each in possession of assets exceeding 100,000 US dollars.

Zhejiang is traditionally regarded as a wealthy province in China where private businesspeople control 900 billion yuan worth of assets, making it an ideal market for foreign banks. It is reported that Standard Chartered Bank has recently launched a family money management service in Asian market targeting at customers each with family assets exceeding 50 million US dollars, or 400 million yuan, 60% of them from privately-owned enterprises in Zhejiang.

At present, the millionaires in Zhejiang still choose to have most of their money put by in the banks, which can give them only a small amount of interests. As more banks are launching money management services in China, experts predict that Zhejiang will form an ideal market for both domestic and foreign banks.