As China’s economy continues to flourish, foreign financial services institutions are staring into what potentially is the largest investment management opportunity in the world, and as personal investment markets begin to mature and grow, insurers will find themselves in a position to become true financial advisors to China’s newly minted middle and upper classes.
Currently, the Chinese financial services industry is not adequately meeting the needs of consumers. The Chinese banking system, for example, is undergoing reforms to help increase profitability and improve efficiency, but is still require time to get-into “world- class” shape. Operated and heavily regulated by the government, banks historically have extended a majority of loans to unprofitable state-owned enterprises to keep them operating. Bad loans, which account for some 40-50 percent of all lending, have been granted with little expectation of being paid back. At the same time, bank assets total an estimated US$3.7 trillion, the highest for any economy in the world. This is one of the reasons for unprofitable stock and bond markets - and questionable places for stable and profitable investment.
Aruvian's R'search’s market research report on Analyzing China’s Financial Services Industry takes a look at this dynamic and changing industry right from the basics. Discussing profit in the industry to the major issues facing the sector, Aruvian’s report delves in to the integration of the Chinese Financial Services Industry with the rest of the world.
The report focuses on the issue of GATS, China’s WTO entry and its impact on the sector, the liberalization of the Chinese Financial Services Market and its impact on the economy of the United States, and the leading market players are just some of the topics discussed in this comprehensive report.