The Definition of Successful Investing to Affluent Chinese (The Asset)
According to a report by Shanghai Advanced Institute of Finance (SAIF) and Charles Schwab, Chinese emerging affluent have varying definitions for “successful investing” with the majority (74%) polled in their survey taking a short-term view on investing. For them, “successful investing” means either “beating the market average” or “simply achieving their short-term goal:”
Many Chinese emerging affluent also have unrealistic expectations about what they can achieve through investing as Lisa Hunt, executive vice president, international services and special business development at Charles Schwab, was quoted in an article by The Asset about the study as saying:
“In the US, for instance, if you have a well-balanced portfolio that is achieving about a 6.5% return on average, we think that is a great return. When you talk to a Chinese investor 6% return is not great. There really is a disconnect between realistic expectations and this notion of guaranteed investing.”
The Asset also noted a Boston Consulting Group study that predicts in 2020, there will be 280 million new affluent individuals in China – more than double the number recorded in 2012.
To read the whole article, Why gambling is second nature to China’s new rich, go to the website of The Asset. In addition, check out our China closed-end fund list and China ETF list pages.
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