Comparative Analysis Of Financial Products’ Innovation Between Chinese And Foreign Private Bank

China’s economic boom has created a number of high net worth clients, and private banking business is growing into a hotly contested spot. As the means of realizing customers’financial goals, financial products have become the core of private banking services, and one of the decisive factors to the success of a private bank. China’s private bank financial products are seriously homogenous, single-structured, which can’t meet the personalized needs of high net worth clients. At the same time, although foreign private banks started in China almost at the same time as Chinese private banks, they have rich experiences, perfect product system, especially the global asset allocation, which help customers share the global benefits and lower the risks.Under this background, making comparative analysis on financial products between foreign and domestic private banks has great practical significance. Part One defines the private banks and financial products discussed in this dissertation, then introduces their competition patterns. After that we make theoretical explanation and practical extension to the supply&demand theory and the theory of financial innovation.The body of the dissertation is composed of three parts:the first part mainly introduces the system of HSBC and Standard Chartered Bank’s financial products, the case study is mainly focused on the Standard Chartered Bank’PCI’ basic mechanism. Which main assets invested in currency pegged to the performance of foreign exchange and bond markets, the mechanism is complex because it sold a put option of pegged currency. Through the case study of foreign financial products, this dissertation sums up four enlightenments on financial products’ innovation:a clear market positioning, global asset allocation, customer-centered design terms, high value-added services. Taking the example of’Zhao Yin Jin Bao’ and’Hai Wai Xun Bao’series from CMB, as well as the. example alternative investments from ICBC, the second part analyzes the funding trend, offshore finance and the innovation of underlying assets. To sum up, financial products’ innovation of Chinese private bank shows up in three ways, the innovation of underlying assets, operation patterns, investment&marketing channels. According to the above two parts case comparative analysis, the third part concludes three problems of domestic product innovation:a lack of human-oriented concept, risk monitoring and supporting services. Then put forward four solutions:integration as the basic means, security as the basic premise, foresight as the basic nature, customer demand as the basic motive power.