Research On Current Situations And Countermeasures Of Asset Allocation Of China’s Wealth Management

In2010, China has become the second largest economy in the world, just ranked after the United States. With the country’s rapid economic development these years, the personal wealth of the residents has also increased by leaps and bounds. Statistics shows that, by the end of2010, the number of the millionaires in US dollar in China has topped third in the world. The growth of wealth stimulates the demand of the wealth management, meanwhile, most of the people aim to keep or increase their asset to avoid the risk of money depreciation caused by inflation.The wealth management is defined as series of the financial arrangements based on the different life stages. Apart from the personal financial status, the management also takes account of the income and consumption levels, the financial expectations, the risk tolerance as well as the individual preference, in order to achieve the financial security and freedom at last. The wealth management comprises the cash management, investment planning, real estate planning, education planning, insurance planning, tax and heritage planning and so on. In this paper, I will mainly focus on the problems and development countermeasures of asset allocation in wealth management based on the current status of wealth management.The paper will be divided into5parts. Firstly, this paper discusses the background and the significance of the topic, then indicates the research status at home and abroad as well as the research thought and methods. Secondly, it brings you some basic concepts and important theories of wealth management and asset allocation. Thirdly, it indicates the main problems existing in asset allocation of wealth management from the angles of person and bank in China. Finally, by introducing the financial product, the process of asset allocation, demand and supply suggestions and external environment improvement in personal asset allocation, the development countermeasures has come into being. Most fo the past research related to asset allocation in wealth management was limited to the comparison among different financial products, not involving the asset allocation provider. This paper makes the supplement in this aspect by adding bank as the main provider for research, so as to find more reasons and contradictions of the current problems. Meanwhile, it helps try to solve the problems from a larger scope.