Hong Kong, Mainland China Affluent Citizens Are Less Upbeat Than Rest Of Asia -Study

Vanessa Doctor

3 May 2011

A new study on wealth priorities among Asia's affluent reveals that those living in Mainland China and Hong Kong have the lowest levels of wealth confidence, compared with the rest of Asia which have generally high hopes for the future.

According to the survey, Asians are confident when it comes to recovering their wealth or growing them over the next few years. Singaporeans, for instance, feel their wealth will increase over the next year, with 76 per cent saying so, compared to those in Hong Kong, recording the lowest level at 67 per cent. Of the total respondents, 60 per cent said they had made money in the last 12 months, while 81 per cent believe they will make money in the next 12 months.

On the item where they were asked about linkages to luxury items, 48 per cent of Hong Kong's rich said they want a car that makes a statement, and 54 per cent prefer to be publicly affiliated with the charities they're supporting. This contrasts with the 23 per cent of luxury car fans and the 34 per cent of high-profile coverage on charitable activities in China.

When it comes to wealth goals, the shortest horizons, or less than eight years, come from China, India and Indonesia. The longest, over 10 years, come from Hong Kong and Taiwan.

As regards confidence in banks, 41 per cent said a good reputation is paramount, while a bank's ability to simplify matters came in second at 24 per cent. Reputation is most highly ranked in China, with 55 per cent, then in Indonesia, 54 per cent, then Hong Kong, 50 per cent. In terms of investment attitudes, the ones with the highest risk appetites come from Hong Kong, Indonesia, India and South Korea, while those in Malaysia, China, and Singapore prefer the more conservative investment routes.

"Individuals have different emotional connections to wealth and their ability to create it. This report shows that banks need to ensure their offerings are customised to meet a wide range of lifestyle and financial needs if they are to truly connect with customers and meet their expectations," the company said in a press release.

Song Management Group is an options and futures third party advisory brokerage firm based in Shanghai.