The survey was based on interviews with 150 Chinese investors with an average of $2.5 million in investable assets in the 40-74 age group and 50 investors in the 18-39 age group.
According to the report, all surveyed younger Chinese investors are confident in their ability to manage their investments compared with 93% in the 40-75 age groups.
“Both of these percentages are higher than the global average of 86%,” the report said.
Asset class preference reflected an aggressive approach. “Younger Chinese investors consider equity income funds (60%) and high yield bonds (60%) as the top two asset classes to meet their income needs. In addition, six in ten younger Chinese investors currently invest in high yield bonds, compared to only 37% of their older counterparts.”
Optimism was widespread among younger Chinese investors, with 96%, somewhat or very optimistic about their investments in the next 12 months, compared to 87% for the older group.
“With the rise of the affluent class in China, we are seeing substantial growth in Chinese investors’ confidence in managing investments as well as an increasing need for income across the age segments,” said Freeman Tsang, director of business development for China and Hong Kong.
“Our survey shows that the younger generation of investors are more confident in their investment abilities and are more aggressive [than older Chinese investors], but it would be beneficial for investors to work in partnership with financial advisors to help them explore opportunities that will diversify their portfolio.”