With the sustained growth of the domestic economy, the increase of the scale of personal investable assets and the improvement of asset allocation requirements, the demand of Chinese mainland investors for cross-border financial services and investment is growing. Against this background, CIC has issued the Blue Book of China's Cross-Border Financial Services and Investment Industry (Blue book of overseas financial services and investment market for Chinese investors) (hereinafter referred to as the "report"), which not only combs the development process of Chinese mainland investors' cross-border financial services and investment. At the same time, it makes a detailed and in-depth analysis of the market scale, driving factors, competition pattern and representative companies of different types of financial services and investment.
The mainland leads the world in the growth rate of per capita financial wealth, and the proportion of overseas asset allocation needs to be improved.
The scale of global financial wealth has increased steadily over the past five years, with Chinese mainland leading the world in terms of per capita financial wealth with an average annual growth rate of about 10 per cent. However, it is estimated that despite the strong rise in financial wealth, Chinese mainland investors will account for only 6 per cent of the total personal investable assets abroad in 2021, compared with 30 per cent in developed countries such as Japan and the United States.
Mainland investors have a long history of cross-border financial services and investment, and the market is moving towards digitization of transactions, diversification of products and normalization of supervision.
With the development of the Internet, there are more and more channels for Chinese mainland investors to participate in cross-border financial services and investment. in addition to the traditional bank foreign exchange, it has also expanded to stocks, bonds and other forms in recent years. and the rise of cross-border LiCaiTong, virtual banks and other financial business also provides more channels for Chinese mainland investors to participate in cross-border financial services and investment. The report points out that at present, Chinese mainland investors' participation in cross-border financial services and investment mainly shows the trend of technological means to enhance users' online experience, diversified products to accurately match customer needs, and the continuous improvement of the regulatory system.
As the first choice for cross-border asset allocation for mainland individual investors, Hong Kong is making use of differentiation to reach and serve more such investors.
Because of its open and flexible financial environment and closer geographical and cultural ties with Chinese mainland, Hong Kong, China has gradually become the first choice for a large number of Chinese mainland individual investors to "go out" to achieve asset allocation and wealth appreciation in recent years. From the perspective of institutional categories, the institutions providing financial services to Chinese mainland individual investors in Hong Kong, China are mainly divided into Chinese-funded financial institutions in Hong Kong, local financial institutions and international financial institutions in Hong Kong. Among them, Chinese financial institutions have more advantages in reaching individual investors of Chinese mainland because they carry the good brand reputation and huge business base of Chinese mainland parent company. With the increase in cross-border financial services and investment demand of mainland individual investors and the increase in the scale of overseas funds in recent years, some Hong Kong local financial institutions have also begun to vigorously expand this kind of customer base; while international financial institutions in Hong Kong, because of their long history and high brand awareness, are mainly aimed at some Chinese mainland institutions and individual investors with larger capital scale. Under the background of the continuous standardized development of China's cross-border financial services and investment industry, promoting the expansion and strengthening of Chinese-funded financial institutions in Hong Kong will not only help enhance their overall competitiveness in the financial services and investment industries in Hong Kong, China, but also play a positive and exemplary role for Hong Kong's local financial institutions and Hong Kong-based international financial institutions in the development of cross-border financial services and investment industries for Chinese mainland investors.
The stock of mainland individual investors will continue to be one of the important participants in the financial services and investment market in Hong Kong, China.
The report points out that despite the brief impact of the epidemic, the banking, securities and asset and wealth management services markets of Chinese mainland investors in Hong Kong have shown overall growth in the past five years. However, as the epidemic has prevented Chinese mainland individual investors from coming to Hong Kong, and UnionPay has limited ways to buy insurance, the size of Chinese mainland investors' insurance business in Hong Kong has declined rapidly in the past five years.
It is estimated that the scale of personal deposits, personal online securities transactions and personal long-term insurance premiums of Chinese mainland investors in Hong Kong in 2021 will reach about HK $800 billion, HK $2.6 trillion and HK $700 million respectively, at the same time, the size of the overall asset and wealth management market in Hong Kong, China (represented by public and private equity funds) reached about HK $13.8 trillion Of these, Chinese mainland individual investors account for about 1 per cent. With the rapid economic development of the two places, further growth of individual investment demand, and continuous compliance of cross-border financial services and investment industries, although the growth of Chinese mainland's individual investors will gradually slow down, its stock will still be one of the important participants in the financial services and investment market of Hong Kong, China.