In November, China’s central bank acknowledged that the country needed to focus on prioritising financial stability amid increasing challenges and risks. The country must counter risks from “abnormal” market fluctuations stemming from external shocks, Reuters reported. What impact is this market risk having on investors and in particular, China’s high net worth individuals? In the face of these challenges, how are they responding?

Systemic risk in China’s market could spell danger for high-net-worth individuals that have their portfolio fully concentrated in China, Baldo Sanso, President of Tracia Hong Kong [ Ссылка ], argues in this video. Many of these investors are now seeking opportunities for investment outside China [ Ссылка ].

“It’s a matter of risk diversification. High net worth individuals have made most of their money in China, but they are subject to the economic risk of exchange control, market fluctuation, etc. They somehow need to diversify that risk,” Baldo Sanso argues.

Those with the ability to do so should look to extend their portfolios internationally, taking steps to mitigate the risk posed by a uniform investment portfolio. However, presenting investment opportunities that are appropriate and appealing to the new generation of Chinese high net worth investors can come as a challenge, as Baldo explains…

свернуть