Date
12 December 2017
Urban properties would be good in a diversified investment portfolio, according to a fund manager.  Photo: HKEJ
Urban properties would be good in a diversified investment portfolio, according to a fund manager. Photo: HKEJ

How to vie for investment dollars from China’s super rich

Everywhere, rich people try to figure out how to protect their wealth, if not grow it.

In the case of wealthy Chinese, the decision often comes down to a choice between keeping their money at home and investing it overseas.

It appears more than half of them are already invested abroad.

About 51 percent, in fact, according to a survey by Bain Capital and China Merchants Bank (03968.HK, 600036.CN).

The survey covered individuals with disposable assets worth 50 million yuan (US$8 million) or more. Half of those who have no overseas investment are thinking about it.

China’s moneyed class is sitting on 9 trillion yuan of investable assets, according to state news agency Xinhua, citing Liang Xinjun, chief of Shanghai-based conglomerate Fosun Group.

Zhang Xigang, international investment director of Bosera Fund, recommends a diversified portfolio that includes US and Hong Kong stocks and overseas properties in core urban districts.

Zhang says the US economy is on the rebound and as long as the Federal Reserve maintains ultra-low interest rates, it will create investment opportunities in the US and around the world.

Naturally, domestic fund managers would rather rich Chinese keep their money in China, but given a lackluster stock market, the argument militates against domestic investment.

But there may be hope in the growth enterprise market. The Chinext price index almost doubled last year.

– Contact the writer at [email protected] 

RA

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