Private Banking Research

Since the 1980s,China has shown a rapid trend of economic development,and personal disposable income of the resident has increased largely compared to the past.At the same time,more and more people become high net worth individuals(HNWIs)owing to the great reform and opening-up policy.And at present,they are in general between 40 and 60 years old.HNWIs at this age consider their ever-growing wealth as heritage and hope to find professional assets management agencies to customize asset management solutions in order to keep,increase and pass down the value of their assets.In addition,as domestic interest rates are increasingly determined by the market and e-finance gains booming development in these years,a serious problem that the products and services of domestic commercial banks are becoming quite similar results in the continuously competition pressure and severe challenges and tests in profitability.For example,private banking changes the profit structure,improves the profitability and specialization degree of traditional commercial banks.In this case,private banking has lead the direction of strategic and functional transformation of traditional commercial banks which is influenced and driven by the supply and demand in the market.Private banking originated in Europe.It is designated for the HNWIs to provide extremely private financial services for them.Due to a rise in market demand,private banking is having much rapid development in China in recent years,which plays a role as intermediary business in domestic commercial banks.However,domestic private banking at present is insufficiently experienced and the vocational level is pending enhancement because of the short time of managers More importantly,asset allocation is the core of private banking,but few of the commercial banks pay much attention to it.Therefore,it is a pressing need for us to have in-depth study in asset allocation.The main purpose of this research thesis is to illustrate the types of private banking services and have further study on Chinese HNWIs,including their investment behaviors,investment expectation and change in demand.Moreover,the study mentioned will be implemented on the basis of mature external experience on private banking.The thesis covers a lot of aspects of private banking,including the basic concepts,different stage of development,requirements from the clients and the process of designing unique asset allocations for the HNWIs.