A new research report from the CFA Institute, titled "Chinese Investors: Understanding China's Next Generation of Wealth," reveals that Gen Z and millennial mass-affluent, high-net-worth, and ultra-high-net-worth investors in China are reshaping the future of private wealth management. The findings indicate a strong demand for financial advice, alongside a significant gap between investor expectations and practical execution. This disconnect stems from investors holding ambitious long-term financial goals while often being constrained by a lack of investment knowledge and limited access to professional advisory services.
According to the study, wealth accumulation and wealth preservation are top priorities for young affluent investors, cited by 74% and 61% of respondents, respectively. However, many aspire to achieve financial freedom by around age 40 (for Gen Z) or age 50 (for millennials). This highlights a clear disconnect between their long-term ambitions and the investment strategies required to reach them.
When it comes to portfolio allocation, the findings show a heavy tilt toward liquid and capital-protective assets. Cash, cash equivalents, and bank or trust wealth management products account for the largest share of holdings among these young affluent investors. This preference for liquidity and capital preservation stands in contrast to their long-term financial objectives and may ultimately limit their ability to reach their wealth goals.
The report also uncovers a growing gap in professional guidance and investment knowledge as financial objectives become increasingly complex. The primary challenges faced by young affluent investors include economic and market uncertainty (53%), difficulty accessing professional financial advisors (29%), and a lack of investment knowledge (25%). These figures point to a substantial opportunity within the market for investor education and professional financial advisory services.
Young investors show a clear preference for a hybrid model combining technology with human expertise. The research shows that nearly all respondents use some form of financial advisory service. Gen Z investors tend to lean on robo-advisors and digital platforms, while millennials show a stronger preference for traditional financial advisors. Close to 60% of respondents use both human and digital channels, with multi-channel users demonstrating the highest levels of engagement.
Additionally, financial professionals remain the most widely used and trusted source of information, with a usage rate of 57% and a trust level of 76%. Financial influencers also play a significant role, as 51% of respondents reference their content and 66% of those trust the information provided. This underscores the growing importance of establishing credibility and professional qualifications in the digital age. The study surveyed 300 young investors across the mass-affluent, high-net-worth, and ultra-high-net-worth segments.