Study On The Project Of Private Wealth Management In Industrial Securities

According to "2011China Private Wealth Management White Paper" issued by The Hurun Report and China UnionPay, the number of Chinese multimillionaire increased9.7%in2011, reaching96million, ranking fourth in the world right after America, Japan and German. Rapidly growing private wealth and strong financial management needs attract attention from all kinds of financial institutions, such as Commercial banks, insurance agencies and securities companies, In2007, setting up the private bank in Bank of China became a symbolic event, which officially indicated Chinese-funded financial institutions involved in the business field of private wealth management.In China, private wealth management is still fairly new, and comparing to the mature private wealth management services in America and European developed countries, there are gaps in all specs, which including service concept, service mode and professional investment and management ability. Taking the reference from foreign private wealth management agencies’ experience and create the China-based private financial managing firms which fit domestic market is not only necessary for the evolve of Chinese finance firms but also a demanding factor in order to promote China’s economy growth.The first chapter of this paper describes the opportunities and challenges faced by the Chinese private wealth management business, and also summarized the main research contents and methods of this paper. Chapter2first analyzes the definition of private wealth management, then points out that the private wealth management service for high-end customers offers richer content than personal wealth management for general customers, moreover, it also introduced the important theory of foreign private wealth management service, summed up the experience of private wealth management service in Merrill Lynch. The second part of this chapter analyzes the substantive progress, which is achieved by private wealth management business in banks, trusts, funds and securities companies, then states the strengths and weaknesses of the private wealth management service within different financial institutions from four angles, which are customer base, management ability, innovation capabilities and market confidence. Assessment and SWOT analysis of the securities brokerage business in Industrial Securities reflects the fully necessity of participating private wealth management business. In this research paper, the core question is how to plan and carry out the private wealth management service base on customer-centric principles in Industrial Securities. To answer this question, this paper suggest the Industrial Securities follow three basic operation philosophies, which are advisory-driven core business model, low risk basing-achievable profit targeting asset allocation model and resources integration organizational structure. Following these three basic operation philosophies, Industrial Securities then could make specific planning proposals, such as organizational structure, business process reengineering, evaluation criteria and safeguards for private wealth management service.