The Research On Clients’asset Allocation In Private Banking

With three decades of reform and opening up as well as the high speed increase ofour national economy, the pace of social wealth accumulation increases. There is a rapidincrease of the total high net worth clients. Thus the needs for wealth managementemerge.Private banking was originated in Europe, which refers to the banking servicetargeting at the high net worth population with high privacy. Being one of the mediumbusiness of the commercial bank, private banking develops fast in our country recently.However, due to the short history and shortage of the talents, the business level ofprivate banking is low in our private banking. Asset allocation is the important contentof private banking, however it is not conducted well in many banks, thus deep researchis needed urgently.The main purpose of the paper is to study the existing asset allocation theory so asto make a deep research on the investment behavior feature, wealth target and assetallocation methods of the high net worth clients in Chinese private banking on the basisof the mature experience of the asset allocation of the high net worth clients in foreignprivate banking. The paper deals with the basic concept, development procedure, assetallocation issue faced, related theory of asset allocation and private banking high networth asset allocation procedure as well as construction in private banking etc.The uniqueness of the paper is shown as below:(1) Review and reorganize thefinancial theories like the investment portfolio theory, efficient market theory, marketopportunity choice theory, behavioral financial theory and life cycle theory to explorethe theoretical basis of the asset allocation in private banking.(2) Make a relatively deepresearch on some of the technical problems in the process of asset allocation and theprocess itself.(3) Use case research method to show in detail the specific process of theasset allocation in private banking.