Research On The Strategy Implementation Path And Effect Of Foreign Banks’ Development Of Wealth Management Business In China

The rapid development of China’s economy has promoted the rapid increase of residents’ wealth,which has also promoted the improvement of residents’ awareness of financial management,and the residents’ demand for wealth management has gradually become stronger,driving China’s wealth management market to develop into a blue ocean market with broad prospects.In recent years,with the accelerated pace of financial opening up,foreign banks,as important participants in the financial market,are also speeding up their deployment in China’s wealth management market.Among them,HSBC,as one of the first foreign-funded banks to enter China,is also increasing its investment in China’s wealth market.At the same time,the effect of its wealth management business in China has gradually emerged.This article argues that wealth management,which aims to meet the needs of customers at different stages and to achieve wealth preservation and appreciation,is a customer-centered,customized financial investment advisory service that provides customers with a series of financial products such as deposits,funds,insurance,and investment portfolios.This paper first analyzes the comparative advantages of foreign-funded banks in developing wealth management business in China compared with Chinese-funded banks.This paper argues that the comparative advantages of foreign-funded banks are good brand and reputation,sound products and management,strong product research and development capabilities,and rich experience in cross-border and foreign exchange business.Secondly,aiming at the strategy and implementation path adopted by foreign banks to develop wealth management business in China,this paper takes HSBC as the research object,and finds that the development motivation of its wealth management business is mainly concentrated in the external environment and internal operation requirements,and analyzes the business strategy and specific implementation path in wealth management.Based on the Asian strategy of "focusing on advantages",HSBC focuses on serving high-net-worth individuals in its implementation path,providing them with comprehensive and diverse wealth management products and services,continuously improves customers’ digital experience on wealth management by relying on financial technology application projects,and realizes the scale effect of wealth management business through internal platform of collaborative management.On this basis,this paper uses data from annual reports and information from official reports of HSBC in recent years to analyze the development effect in wealth management business,and finds that after the development of wealth management business strategy,the profit contribution,profit model,capital structure,AUM and industry recognition have a positive effect,but its operating expenses keep climbing.Finally,based on the development experience of HSBC in the wealth management business,this article also puts forward four suggestions:around the wealth management business,continue to optimize the customer’s business strategy;pay attention to the role of "talent" and build a team of professional wealth management consultants to improve service quality;rely on financial technology to optimize customers’ digital wealth management experience;always pay attention to emerging areas of the market,gain insight into customers’ diverse needs and dynamically adjust products and services.