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2020 China Rising Affluent Financial Well-Being Index

November 27, 2020

The 2020 Index presents much cause for optimism alongside areas requiring heightened concern. Many of the rising affluent appear to be taking a more proactive approach to financial planning, and respondents also indicated greater heed to the importance of diversification by moving their portfolios towards a fuller range of financial products. At the same time, a significant proportion of the rising affluent show signs of financial mismanagement, indicating a growing need for investor education and guidance. Growing positivity towards diverse forms of financial advisory may suggest a pathway for financial services industry to enhance rising affluent ability to navigate these challenges.

The fourth edition of the Index investigated the response of the rising affluent to the COVID-19 pandemic, deepening our understanding of how they adapt their finances to unexpected shocks. The Index surveyed more than 4,300 members of China’s rising affluent class – those earning CNY 125,000 to 1 million per year but owning less than CNY 7 million in investable assets – across 15 cities in China, including Shanghai, Beijing, Guangzhou, Shenzhen, Chengdu, Hangzhou, Dalian, Xiamen, Chongqing, Wuhan, Nantong, Shijiazhuang, Zhongshan, Kunming, and Xiangyang, asking 65 questions, including core Index questions. 

The Rising Affluent Financial Well-Being Index was commissioned as part of a collaboration between SAIF and Charles Schwab & Co., Inc. Survey design, data collection, and Index formulation were conducted by Nielsen, an international research organization. This 2020 Index seeks to further enhance financial professionals and policymakers’ understanding of the drivers behind the investor behavior of the rising affluent, and subsequently, the ability to serve this emerging powerhouse of the Chinese and global economies.

Click on the link on the right hand side for the full research report.