New Financial Investment Management for Chinese Middle Class

Amid the global financial crisis, many people in China have shrank their private financial investment in order to avoid further loses. But a new package of private banking services has been launched by Bank of China, targeting the newly emerging Chinese middle class.

Let's take a closer look with our reporter Liu Min.

Chinese banks in recent years have been seeking new ways to get the middle class to invest in the financial market. The Bank of China is among the first group of banks which provided private banking services for the middle class. The manager of the bank's private financial services Yue Yi says the middle class is a big group which commands more attention.

"China's society and economy has undergone a huge transformation during the past 30 years. The middle class has rapidly emerged in China during this time. This group of people has become more and more mature and rational in their private financial investment. There is a big demand for more professional consultative services for this group of people in China."

Some people call families in cities like Beijing and Shanghai with income and financial assets each above 150 thousand Yuan, plus with stable health insurance as middle class family.
 
Even with the financial turmoil affecting the Chinese economy, this group is growing. According to statistics, by 2008, there are approximately 80 million such families in China. This emerging class in China caught the attention of banks in China. Services like private banking have been launched by both domestic and foreign banks targeting this group of customers.
 
A new financial management service called Prestigious Wealth Management has been launched nationwide, providing services to people with high income. The package is designed for customers from upper middle class families with an investment of more than 2 million Yuan in the financial market. The president of the Bank of China Li Lihui says customers will be offered many convenient and high-quality services.

"We will provide international-standard service for customers in China. Our consultants will provide plans for middle-class households for their children's education, mutual funds and stock investment strategies, as well as health insurance. It is more like a private financial manager for each household to make sure their wealth keeps growing. We want to reduce their exposure to risks during periods such as the global financial turmoil."

The expansion of the middle class is set to spur domestic consumption and demand which will ensure sustainable and healthy development of the Chinese economy. To a large extent, a good management of the middle classes' money will help strengthen the Chinese economy.
For China Drive, I'm Liu Min.