Greetings,

Earlier this week, we released our first annual League Table for China’s private banking industry. The data is as timely as it is revealing, given that China’s domestic PB market celebrates its tenth anniversary this year. 

Combined, China’s Top 10 private banks by AUM accounted for RMB 7.5 trillion in client assets at the end of 2016 (if you’re interested in interim figures, let me know). That’s an increase of almost 22% YoY vs. Asia’s (ex-China) 6.1%. Moreover, China’s Top 10 have grown their combined assets at a compound annual rate of 30.6% since 2012.

Now, size isn’t the be-all and end-all and, of course, China’s domestic industry is still relatively immature. I spent a number of weeks on the Mainland over the past half year catching up with these institutions (as well as a number of leading WM firms) and the narrative is the same across the board.

For the industry to mature, greater work needs to be done around client education, particularly when it comes to the importance of asset allocation and, more fundamentally, the risk-return relationship. The same holds true for industry practitioners who, for the most part, lag their international peers in terms of sophistication. 

Business models are under review too. Interesting to see that a few banks (e.g. Minsheng) are pursuing the ‘one bank’ approach by shoring up IBD synergies, while others are actively seeking out third party-partnerships to broaden the product shelf notwithstanding regulatory limitations.

I’ll leave the detailed commentary to later – we will be releasing a slew of China-related coverage over the coming fortnight, so stay tuned.

Your Top Eight for the week follows.

Cheers,
Sebastian Enberg
Editor

INDUSTRY | EXCLUSIVE   27 September 2017
China’s Top 10 private banks grow AUM by 21.9% to RMB 7.5 trillion in 2016
China’s Top 10 domestic private banking institutions collectively managed RMB 7.5 trillion (US$1.1 trillion) in client assets at the end of 2016, after growing their combined AUM by 21.9% YoY, according to exclusive data from Asian Private Banker.

INDUSTRY | EXCLUSIVE   28 September 2017
Bank of China: “China’s private banking industry at an important juncture”
On its tenth anniversary, Bank of China can lay claim to having one of the country’s oldest and largest private banks, having been a significant beneficiary of China’s economic rise which has not only pulled some 700 million people out of poverty, but produced 1.6 million HNWIs as of 2016.

FAMILY OFFICE/IAM | EXCLUSIVE   25 September 2017
APAC family offices seek bespoke private market impact investments, says UBS WM’s Anurag Mahesh
Impact investing continues to be a trending topic amongst family offices serviced by UBS Wealth Management’s Global Family Office (GFO) unit, with many preferring bespoke deals in the private market, the Swiss private bank’s GFO APAC head, Anurag Mahesh, tells Asian Private Banker.

TECHNOLOGY | EXCLUSIVE   22 September 2017
Avaloq’s Fernandez on the firm’s new private banking customers in Asia, digital strategies in China and the BPO buzz
Avaloq has added two more private banks in Asia to its roster of customers, the core platform provider’s group CEO, Francisco Fernandez, tells Asian Private Banker in an exclusive interview.

APB MANDATE | ADVISORY | EXCLUSIVE   27 September 2017
UBS WM: For tech investors, valuations are less important than stock picking
For private clients in Asia who want exposure to the technology sector, identifying winners is more important than basing decisions on valuations, according to Sundeep Gantori, executive director and equity analyst at UBS Wealth Management’s Chief Investment Office.

APB MANDATE | ALTERNATIVES | ASSET MANAGERS | EXCLUSIVE   26 September 2017
Relative value fixed income strategies poised to shine: GSAM
With credit markets trading at “extreme valuations” and risk premiums having eroded, sophisticated investors in Asia are gradually turning to relative value fixed income strategies, which are poised to outperform long-only assets as volatility rebounds, says Jonathan Xiong, Goldman Sachs Asset Management’s (GSAM) head of fixed income alternatives.

PEOPLE | EXCLUSIVE   22 September 2017
SocGen names new regional head of private banking cross-asset distribution
Societe Generale has made an internal appointment for the role of head of private banking cross-asset distribution for Asia, following the promotion of the former head to a larger role.

PEOPLE | EXCLUSIVE   27 September 2017
UBP’s SEA market head steps down
Union Bancaire Privée’s market head for Southeast Asia has resigned after a little over six months in the role, Asian Private Banker can reveal.