Robo-Advisors in China

Robo-Advisors are a relatively new technology that are starting to be a disruptive force in marketplaces world-wide. They are gaining trust among consumers internationally and every year are increasing their share of the highly competitive wealth-management industry. Chinese market conditions make it highly intriguing for Robo-Advisory firms to make an entrance as multiple factors indicate a high potential for growth in the country. This report discusses the opportunities and challenges facing firms in the Chinese Robo-Advisory market.
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Description

The combination of finance and technology in what we now know as ‘fintech’ has brought many new new business models to the market, one of the fastest growing of which is robo-advisory. Robo-advisors are computer driven, enhanced investment engines that help individual investors make better decisions about their money, with varying levels of success. The robo-advisor space in China is new, but growing rapidly and comes at an interesting time, as retail investors are becoming more mature and sophisticated with their investments.

However, there is uncertainty about the future these platforms. Although they have the potential to help investors reach greater returns on investment, in a market where money market funds and simple money market funds pay high-single digit returns, where do robo-advisors fit in? The middle class is still under-served by the traditional wealth management industry and may have significant potential. China’s recent slow down, volatile stock market, and weakening currency have all been catalysts for robo-advisor demand as investors start looking for more consistent returns. Robo-investment also gives consumers the option of investing in overseas markets – within China’s foreign currency limitations. Given the economic slowdown, this seems to be a very attractive option for Chinese consumers.

In this report, we will first discuss the robo-advisory process. Then we will take a look at the global market for robo-advisors, and why the Chinese market is ready for this service, despite the limitations. We will also talk about Chinese consumers’ trading and investing preferences and discuss restrictions in the Chinese market and regulation on cross-border transactions as well as some of China's other unique market characteristices. Finally, we provide our predictions for the robo-advisory industry in china, and the growth opportunities for both domestic and foreign players.

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Robo-Advisors in China Report Details:

  • Pages: 15 (excluding cover/back pages)
  • Tables and charts: 11

Table of Contents:

  • Introduction
  • Defining Robo-Advisors
  • Why Robo Matters for China
  • China's Regulatory Environment
  • Future of Robo-Advisory in China
  • Conclusion

Graphs:

  • Affluent Chinese Investors with a third party financial advisor
  • Investor Structure in China (2010-2014)
  • US Investor Distribution
  • Annual Turnover Rate for Major Markets
  • ETF Comparison US and China
  • ETF Assets Under Management Comparison US and China
  • Evolution of Advisory in China
  • Brief summary of some of the Robo-advisor businesses in China
  • Key Robo-advisor "start-ups" in China
  • Robo-advisor value chain and its unique characteristics in China
  • Estimated China Robo-advisory market size 2020

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