Approximately 70% of Chinese investors surveyed expressed a high level of trust in the financial services industry and 90% percent of eligible investors believe state-sponsored pension programs will pay out benefits as promised. In addition, approximately half of Chinese investors are worried about an impending financial crisis within the next three years, up from approximately 40% in 2018.
Since there is significant confidence and trust in the system, it is not surprising that a similar number of investors in China believe that they have a fair opportunity to profit by investing in capital markets.
An overwhelming number of Chinese investors continue to value access to technology over people to manage investments and 40% trust advice from humans and robo-advisers equally. Almost 70% of Chinese investors said that they were willing to invest in a fund that used artificial intelligence for its selection process. In China, it is obvious that investors trust technology and value technological innovation as it relates to investing.
When looking to hire a firm, Chinese investors overwhelmingly prefer a trusted brand over people they can count on. When changing investment professional or firm, investors’ top considerations are the level of performance, data security, communication, but not fees. Advisers would do well to provide more personalized products as almost all Chinese investors surveyed want them, and a similar number would be willing to pay more for them.