Chinese HNWI Attract Interest Of International Private Banks

by Philip Morton, Investors Offshore.com

08 July 2003

International private banks currently suffering as a result of slowing growth elsewhere are cautiously eyeing the steadily increasing number of high net worth individuals (HNWI) in mainland China, according to a report from the South China Morning Post (SCMP) at the weekend.

However, the newspaper revealed that although many international private banks are interested in expanding into China, regulatory constraints and the risks inherent in developing markets may stay their hands, at least for now.

Speaking to the SCMP, Patrick du Saint, Hong Kong and North Asia chief executive with BNP Paribas, revealed the firm's interest in the mainland, explaining that:

'At the beginning, we will probably start to provide offshore private-banking services to mainlanders with legitimate assets outside of China.'

He went on to add that although in 2001, the Asia Pacific region accounted for some 24% of the world's HNWI, only a quarter of these individuals were serviced by a private banker.

'The most populated countries in Asia have yet to be tackled by the private banking industry. China onshore is a huge and totally new market, which might become very interesting for private bankers,' the BNP executive explained.

According to figures released by Cap Gemini, last year there were 210,000 individuals in China with a net worth of more than US$1 million each.

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