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Economy

China's middle-class investors look to diversify assets overseas

1
2016-01-14 08:37CRIENGLISH.com Editor: Wang Fan

A growing number of Chinese middle-class investors are seeking to diversify assets by making investments overseas.

The demand has grown with fluctuations in the value of the Chinese yuan and the volatility of the Chinese stock market.

Zhong Hongjun is an investor in Shanghai. He says his family is planning to invest overseas.

"What we need now is that professional investment companies provide Chinese investors with high-quality investment options and help us select good investment products and opportunities overseas."

In order to reduce investment risks, many Chinese are seeking funds run by financial institutions taking advantage of the qualified domestic investor program.

Managing director of the Standard Chartered Bank in China, David Leung, says investing in offshore markets can help Chinese investors hedge risks.

"We see that the advanced economy is at different stages of economic cycle, so that's why we recommend maybe Euro area equities but with Euro hedge because due to the strength of the US dollar, deflationary pressure is to abate in developed market, so the recommendation is maybe you can have a chance in US high yield bonds."

Middle-class investors in China present great opportunities for financial institutions and offshore markets.

According to Forbes China magazine, by the end of last year, China had 15 million people holding more than 110 trillion yuan in total financial assets, and that amount is growing at 8 percent annually.

  

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