To accomplish such an objective the country has to manage the resources of fund generation as well as try to control the negative forces that will cause hazards in the way of fund creations. Success in the process of efficient wealth management brings in job opportunities which reduces unemployment and also leads to the overall development of the country. But if strategic measures taken for the management of wealth are not appropriate, it may lead to serious problems and also affect the economy of the country. 2 Introduction China is the second largest wealth management country in Asia with considerable wealth creations driven by economic growth in the recent years which is unprecedented. Currently China has the second largest number of high net worth (HNW) individuals in Asia Pacific, i.e. about 1.3 million with a combined wealth of $4.3trillion. China accounts for 13.4% of the total HNW individuals and 28.2% of the ultra high net worth individuals (UHNWI) in the Asia-Pacific region with a growth rate of 7.8% in the Chinese market. The good aspect of the study is the demographic make-up of China that makes it extremely enticing to wealth managers as the population is educated and technologically knowledgeable. In addition to it, the rising disposable income and the growing interest in sophisticated wealth management services have aided to the development (Accenture, 2012, p.1). 3 Performance of China’s Financial System Much of the wealth of China has been generated in the course of rapid economic expansion by the financial system in the past two decades. In provisions to the total market capitalization, over the period of 2001-2007 the stock market of China is at 64% of its GDP which is slightly larger than the average GDP of 58% of other emerging economies of the world. Over 2001-2007, in terms of total bank credit to non-state sectors the size of China’s Banking System is 116% of its GDP. In terms of the fixed asset investments the four important financing sources for all firms in china are FDI, the state budget, bank loans, and self-fundraising, in which self fundraising and bank loans compose the main part. Over the period of 1994-2009 the total self-fundraising by all firms have grown at an annual average rate of 23.6% and at the end of 2009 has reached $2,213.2billion. The total bank deposits from individuals and the rate of household savings have been growing since the mid-1980s. 4 Banking Sector Reforms The banking sector of China is dominated by large state owned banks which imply that the degree of competition within this sector is low. During the last decade, the most important problem for the banking sector of China and the entire financial system was the amount of NPLs (Non-performing Loans) within state-owned banks which resulted in poor lending decisions. Recognizing the responsibility and importance of reducing NPLs in the large state-owned banks, the government of China instilled large amount of foreign currency reserves into these banks so as to improve their financial position. Another measure to reduce NPLs implemented by the Chinese government is the establishment of state-owned Asset Management Company. These measures led to the reduction of NPLs in the recent years. 4.1 The Initiatives taken by the State-owned Banks in reduction of NPLs The efficiency of state-owned banks is also responsible for reduction of NPLs. Firstly, the state-owned banks have diversified and improved their structure of loan by increasing consumer loans and initiating risk management policies and active monitoring for loans made to State-owned enterprises. Secondly implementation of the privatization process
Wealth Management in China.
The paper provides an overview of the financial system of China from a cross country relative perspective. The paper reviews the potential wealth management business within China which is rising. …
Mr. China learns to appreciate the nation he intended to conquer. This book was written by Tim Clissold. He has been working in China for almost two decades as a financial adviser and investment specialist in China. This book is a must read for all interested in investing within the boundaries of the Chinese economy.
As many as forty million people died of starvation during the years 1958-61, what the Chinese refer to as the “Terrible Years”, even though the number is unknown due to suppression (Sen). So it is amazing that in just fifty years, China has grown into an industrial giant and its economy has grown to where its GDP is second only to the United States.
Name Instructor Course Date The Great Wall of China The Chinese wall is the world is longest human made structure, extending roughly over 6,400 kilometers from Shan Haiguan along a curve that approximately define the south, but stretches over 6,700 kilometers in total.
He proposed the concept of "invisible hand" which says that there is not much need for the intervention of the government or any other authority in the smooth functioning of the market and the market would correct itself automatically with the help of a pure demand and supply logic.
and China. At the outset of the article, it is maintained that the Great Recession of 2008-09 has forced the America's Congress to have 'a merciful absence of complaints' about China's currency and this very well illustrates the issue at hand. The tight relation between the two nations is brought to light through the observations made in the article and the Yuan's gradual appreciation was checked during the recession.
Franklin has followed a distinctive structure to present his idea. Franklin narrates a story in which the entire script is narrated by another person. In this way, Franklin has been able to quote himself, but in a modest manner. The narrator, whose narration is again narrated to the readers by Franklin, provides the public with advice on being able to pay taxes and simultaneously provides suggestions on the lifestyle that would lead a person to wealth, independence and respect.
Jacques book is an examination of how and why that will happen and what it will mean.
Martin Jacques has printed an excellent and well-liked book on China, which is exactly to the world’s need to understand and engage with the Chinese. Jacques himself
ility thus creating the mentality that they can only be able to generate more money, achieve their goals or become happier, if only they had a better opportunity, circumstance or environment than the one they have presently (Taylor, 110). Therefore, the major impediment of the
ies and characteristics possessed by an individual but it is an interactive process between the leader and the followers (Bass and Bass, 2009).The individuals who are engaged in leadership are called leaders and the individuals towards whom leadership is directed are known as
14 pages (3500 words)Book Report/Review
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