BEST PRIVATE BANK – CHINA INTERNATIONAL
The growth and structural transformation of the Chinese economy – from domestic and capital-driven to internationalised and consumption-driven – poses acute challenges for international wealth managers. Old economy participants are either diversifying their businesses, both by sector and geography, or outright exiting, while new economy participants are positioning their businesses so that they can benefit from a surging middle class that, by 2022, will be large enough to be the third-most populous country. Differences aside, few expect the path to the ‘Chinese dream’ to be smooth – a point exemplified by the financial markets, where a weakening yuan and dichotomous monetary policies promise to inject home-skewed Chinese HNWI portfolios that with episodes of high volatility.
Against such a backdrop, the level of care that is required when managing business and non-business assets has increased, and private banks that can earn and retain clients’ trust and manage portfolios through market cycles stand to benefit from fee-based revenue growth.
Goldman Sachs has proven itself to be a resilient and progressive player within the largest HNW segment in Asia and, in 2016, the American bank continued to carve intrepid inroads in China, further transitioning brokerage-centric clients into fee-based mandates.
Indeed, in a market of reluctant adopters who are often overconfident when it comes to their trading capabilities, Goldman Sachs has established itself as a leading discretionary manager, by asset size and penetration rate, in Asia. And as short-term volatility haunts public markets, its critically acclaimed alternatives platform has played a critical role in helping clients diversify across hedge funds, private equity, global real estate and more.
Ultimately, in 2016, Goldman Sachs’ unwavering commitment to extolling the virtues of a portfolio-centric approach to wealth management yielded stellar results in its China business. Remarkably, this has been achieved in the UHNW space, where investors’ multi-banking tendencies increase the pressure on private banks to outperform competitors.
“Our China business has continued to grow despite the challenging market environment in the past year. Chinese clients value our advice and global capabilities as they increasingly recognise the need for wealth advisory services,” said Nick Yim, head of the North Asia region at Goldman Sachs Private Wealth Management. “China is an important growth driver for us and we are committed to expanding our business.”
Goldman Sachs is Asian Private Banker’s Best Private Bank – China International for 2016.