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China’s Hywin inks foreign bank partnership

Shanghai-based Hywin Wealth Management and Liechtenstein-based VP Bank will be targeting wealthy Chinese investors.

Both firms have signed a memorandum of understanding to “establish a Hong Kong-based collaboration platform to meet the demand of wealthy Chinese for sophisticated wealth management services on- and offshore”, according to a joint statement from the two firms.

The statement did not elaborate on the planned partnership, or whether both firms will establish a joint venture in Hong Kong.

Both firms will be targeting both offshore and onshore ultra high net worth Chinese investors, according to the statement.

“The planned cooperation represents an excellent opportunity to expand our business activities in the Chinese market and to successfully continue VP Bank Group’s Asia strategy with a highly professional and in China widely recognised partner,” Christoph Mauchle, head of client business and member at VP Bank’s group executive management, said in the statement.

A spokeswoman for VP Bank said the tie-up was driven by the Chinese HNWI market, which is expected to grow wealth at a double-digit rate over the next few years.

“At the same time, wealthy Chinese private individuals are moving more and more into the global arena and are demanding global financial services,” she said. “VP Bank will offer Hywin Wealth clients professional investment advice from Hong Kong, as well as two booking locations outside China in Singapore and Liechtenstein.”

Vaduz-based VP Bank runs private bank and intermediaries services. In Asia, the bank’s target markets are Singapore, Hong Kong, Indonesia, Malaysia and Thailand, according to its website.

Meanwhile, Hywin aims to tap VP Bank’s offshore capabilities, said CEO Dian Wang.

“We will now be able to follow and service our clients more closely in their global aspirations,” he added.

Founded in 2006, Hywin has 148 subsidiaries in 72 cities in China, serving 50,000 clients in the mainland, according to the statement. It also has an office in Hong Kong. The company offers asset management, estate planning and philanthropy services.

In 2017, Hywin established a foothold overseas through the acquisition of UK-based Azure Wealth Management.

Domestic wealth managers are starting to expand outside China. Noah Holdings, for example, has opened offices in the US, Canada, Australia and Singapore.

Part of the Mark Allen Group.