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Personal Investment Products - China - June 2015

"Most individual investors in China are not sophisticated yet. This gives financial institutions a good opportunity to provide professional suggestions and help people make better investment decisions.
Financial institutions should also lower the minimum investment amount required, simplify the transaction procedures and enrich the meaning of making investments to engage more consumers to buy investment products."
– Linda Li, Senior Research Analyst

In this report, Mintel answers the following key questions:

  • What is the current development stage of the personal finance market in China? How sophisticated are the individual investors in China?
  • What are the preferences of Chinese consumers when choosing investment products?
  • What are the important consideration factors when Chinese consumers choose investments?
  • What are the main types of investors in China?
Financial investment products are becoming popular in China. Mintel research finds that investing in financial products is currently the most popular way for Chinese consumers to manage household finance. This is attributed to both the lower deposit rate in China and the rising disposable income of Chinese people.
 
As the central bank is likely to lower the interest rate again in the future to further stimulate the economics, Chinese consumers are likely to contribute more savings to buy financial investment products.
 
However, Chinese consumers in general are not skilful and savvy enough in choosing investment products. They are likely to focus on the return and risks, and rely on professionals or more knowledgeable people to give directions and recommendations.
 
They also tend to think they need more knowledge before buying financial investment products. Financial institutions should provide added value to the consumers by educating them, guiding their choices in financial products and simplifying the transaction process.

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Table of contents

  1. Introduction

      • Definition
        • Figure 1: Definition of low/middle/high income groups, by city tier
      • Methodology
        • Abbreviations
        • Executive Summary

            • The consumer
              • Who are managing the household finances?
                • Consumers prefer investing to saving
                  • Figure 2: Ways of managing household disposable income, April 2015
                • Consumers prefer investment products that require low minimum investment amount
                  • Figure 3: Ownership of investment products, April 2015
                • Not having enough knowledge is the biggest barrier against investing
                  • Figure 4: Reasons for not buying financial investment products, April 2015
                • Chinese consumers’ consideration factors concentrate on risks and turns
                  • Figure 5: Important consideration factors in choosing investment products, April 2015
                • Chinese investors rely on recommendations from others
                  • Figure 6: Opinions on the credibility of information sources for choosing investment products, April 2015
                • In general, Chinese investors are still quite conservative
                  • Figure 7: Attitudes towards personal investment products, April 2015
                • Four consumer segments identified by Mintel
                  • Meet the Mintropolitans
                    • Key issues
                      • How sophisticated are investors in China?
                        • Apply the learning from Yu’E Bao in financial product innovation
                          • Simplify the transaction procedures to offer a better experience
                            • Make the investments more interesting to engage Chinese investors
                              • What we think
                              • Issues and Insights

                                  • How sophisticated are investors in China?
                                    • The facts
                                      • The implications
                                        • Apply the learning from Yu’E Bao in financial product innovation
                                          • The facts
                                            • The implications
                                              • Simplify the transaction procedures to offer a better experience
                                                • The facts
                                                  • The implications
                                                    • Make the investments more interesting to engage Chinese investors
                                                      • The facts
                                                        • The implications
                                                        • Trend Application

                                                          • Let Kids be Kids
                                                            • Return to the Experts
                                                              • Prepare for the Worst
                                                              • Background – Current Macroeconomic Conditions and Popular Investment Products

                                                                • Key points
                                                                  • Rising disposable income drives enthusiasm in personal investment products
                                                                    • PBOC’s monetary policies favour the investment market
                                                                      • Figure 8: Benchmark lending and deposit rate in China, October 2010-May 2015
                                                                    • The bullish stock market since mid-2014
                                                                      • Common financial investment products in China market
                                                                        • Figure 9: Comparison of common financial investment products in China
                                                                    • The Consumer – Ways of Managing Household Finance

                                                                      • Key points
                                                                        • Who are active in managing household finances?
                                                                          • Figure 10: Responsibility of managing household disposable income, by age, April 2015
                                                                          • Figure 11: Responsibility of household disposable income, by demographics, April 2015
                                                                        • Consumers seek higher return from financial investment products
                                                                          • Figure 12: Ways of managing household disposable income, April 2015
                                                                        • Men are more active investors than women
                                                                          • Figure 13: Ways of managing household disposable income, by gender, April 2015
                                                                        • Investment ownership strongly skews to the well off
                                                                          • Figure 14: Ways of managing household disposable income, by monthly personal income, April 2015
                                                                        • Education level drives investment enthusiasm
                                                                          • Figure 15: Ways of managing household disposable income, by education level, April 2015
                                                                      • The Consumer – Ownership of Investment Products

                                                                        • Key points
                                                                          • Popularity of financial investment products
                                                                            • Figure 16: Ownership of investment products, April 2015
                                                                            • Figure 17: Ownership of investment products, “I have never bought this”, April 2015
                                                                          • Treat men as expert investors
                                                                            • Figure 18: Ownership of investment products, “Have bought this product”, by gender, April 2015
                                                                            • Figure 19: Ownership of investment products, “I own it currently”, by gender, April 2015
                                                                          • The demand for insurance goes up as people get older
                                                                            • Figure 20: Ownership of insurance products, “I own it currently”, by age and income, April 2015
                                                                        • The Consumer – Reasons for Not Buying Financial Investment Products

                                                                          • Key points
                                                                            • Lack of knowledge is the biggest barrier
                                                                              • Figure 21: Reasons for not buying financial investment products, April 2015
                                                                            • People are most worried about the high risk of investing in stocks
                                                                              • Help people to start small by innovating wealth management products
                                                                              • The Consumer – Important Consideration Factors When Choosing Financial Investment Products

                                                                                • Key points
                                                                                  • Risk and return are core concerns
                                                                                    • Figure 22: Important consideration factors in choosing investment products, April 2015
                                                                                  • Women and younger consumers are more suitable for regular investment plans
                                                                                    • Figure 23: Important consideration factors in choosing investment products, by gender and age, April 2015
                                                                                  • High earners are more likely to look beyond the surface
                                                                                    • Figure 24: Important consideration factors in choosing investment products, by monthly household income, April 2015
                                                                                • The Consumer – Opinions on the Credibility of Information Sources

                                                                                  • Key points
                                                                                    • Consumers mostly rely on recommendations from others
                                                                                      • Figure 25: Opinions on the credibility of information sources for choosing investment products, April 2015
                                                                                    • Compared to men, women are less active investors
                                                                                      • Figure 26: Opinions on the credibility of information sources for choosing investment products, by gender, April 2015
                                                                                    • Consumers from tier two/three cities rely much more on bank staff/wealth managers
                                                                                      • Figure 27: Opinions on the credibility of information sources for choosing investment products, by city and tier, April 2015
                                                                                  • The Consumer – Attitudes towards Personal Investment Products

                                                                                    • Key points
                                                                                      • Most consumers agree it’s better not putting all your eggs in one basket
                                                                                        • Figure 28: Selected attitudes towards personal investment products, April 2015
                                                                                      • In general, Chinese investors are still quite conservative
                                                                                        • Figure 29: Selected attitudes towards personal investment products, April 2015
                                                                                        • Figure 30: Agreement with selected attitudes towards personal investment products, by age and monthly household income, April 2015
                                                                                    • The Consumer – Segmentation

                                                                                      • Key points
                                                                                        • Mapping out the different consumer clusters
                                                                                          • Figure 31: Target groups, April 2015
                                                                                        • Knowledgeable optimists (23%)
                                                                                          • “Hard-working” self-believers (25%)
                                                                                            • Conservative savers (25%)
                                                                                              • The unconcerned (27%)
                                                                                              • The Consumer – Meet the Mintropolitans

                                                                                                  • Why Mintropolitans?
                                                                                                    • Who are they?
                                                                                                        • Figure 32: Demographic profile of Mintropolitans versus Non-Mintropolitans, by gender, age and personal income
                                                                                                        • Figure 33: Demographic profile of Mintropolitans versus Non-Mintropolitans, by marital status, city tier and education level
                                                                                                      • Mintropolitans are active and sophisticated investors
                                                                                                        • Figure 34: Ways of managing household disposable income, by consumer classification, April 2015
                                                                                                        • Figure 35: Important consideration factors in choosing investment products, by consumer classification, April 2015
                                                                                                        • Figure 36: Opinions on the credibility of information sources for choosing investment products, by consumer classification, April 2015
                                                                                                      • Mintropolitans adopt a sound investment strategy

                                                                                                      Personal Investment Products - China - June 2015

                                                                                                      US $3,990.00 (Excl.Tax)