Date
21 July 2017
With the recent collapse in the A-share market, the mindset of mainland investors has swung from seeking returns to looking for safe havens. Photo: Reuters
With the recent collapse in the A-share market, the mindset of mainland investors has swung from seeking returns to looking for safe havens. Photo: Reuters

Safety is all high net worth investors want, for now

Investors’ mood constantly changes with the fluctuating market and economic data. Amid the recent A-share collapse and renminbi devaluation, the mindset of mainland investors also swings from seeking return to looking for safe havens.

Along with that thinking, they have been dumping equity-linked assets and diverting funds to low-risk products like high-grade US dollar bonds, Wing Lung Bank’s private banking unit told Wen Wei Po.

“They don’t care so much about return, as long as it is safe,” a Wing Lung Bank manager said.

In recent years, mainland property market has been languishing amid a supply glut. Together with the bearish domestic stock markets, smart money has been leaving the country quietly.

This trend looks set to continue in the near term and local banks are well positioned to gain from it.

Sharing similar culture and language, Hong Kong has been the preferred place to look for wealth management services.

Following a very good first half, Wing Lung Bank is expecting its private banking business to improve further in the second half.

Although “safety first, return second” is the norm among its mainland clients, the situation can easily change as people in this part of the world are quite forgetful.

“If the stock markets recover, the investors’ mindset will change quickly,” the manager says.

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CG

EJ Insight writer

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