Best Private Bank in China - China Merchants Bank
China Merchants Bank has been busy improving its wealth management services, particularly the pioneering funds platform, including alternative investments, a key distribution target for many smaller managers in Hong Kong and elsewhere in Asia.
“Within the regulation permitted, we will explore whatever is available on the market,” comments CMB’s cautious but gregarious chairman Ma Weihua on the bank’s open platform project. “Although we are committed to these ambitions, we insist on a careful screening process from our product committee. From working with partners to designing the product itself, whatever is best for our clients is our priority.”
CMB now boasts 22 private banking centres in 18 cities, employing 200 staff. Since July 2010, head office in Shenzen has enforced a greater risk control during the sales process. While the Eastern coastal area has more HNWIs with higher assets per capita, the number of wealthy individuals is growing at a faster rate in Bohai Bay and central/western China.
“With the local government’s support, these two regions have enormous potential as new growth hubs for China’s private wealth market. The growth rate of our staff will have to double within the next three years,” predicts Mr Ma.
There is a regular check to make sure private banking relationship managers are conducting an advisory consultation and sale of products based on full understanding of a client’s needs, rather than a fast-track approach which cuts corners. Internal auditors also check that single product risk and overall asset allocations are adequately explained to clients.
Recently, the head office has recruited an expert team of ten global investment consultants, including experts in securities, funds, insurance, asset allocation and risk management. This inner circle provides an international perspective and professional support to senior private banking managers. New private bankers are expected to complete a tailored training course at the Hong Kong Securities Institute.
Product innovations include a high yield real estate fixed income fund and products investing in art, wine, commodities and “arbitrage transactions”.
International ambitions are being harnessed through the recently-acquired Wing Lung bank in Hong Kong, which is able to provide greater asset diversification for the wealthier end of the client spectrum. YB
