UBS(US:UBS) Mei Ri Jing Ji Xin Wen·2025-11-23 15:48Core Insights - The Chinese wealth management market is experiencing significant growth, with increasing importance in the global landscape, necessitating a reevaluation of asset allocation strategies in a complex geopolitical and economic environment [1] Group 1: Stock Allocation Value - High-net-worth clients in China prioritize asset value stability, often preferring to hold cash due to market risk aversion, but low interest rates make cash savings insufficient against inflation [2] - Asset allocation can enhance overall return potential while controlling risk; for conservative clients, a significant portion of funds is allocated to cash-like assets rather than pure cash [2] - UBS suggests a stock allocation of around 25% for Chinese clients, focusing on timing and sector selection rather than broad market entry [3] Group 2: Alternative Investments - Family offices are increasingly allocating 14% to 15% of their portfolios to alternative investments, up from single-digit percentages, despite their lower liquidity and longer investment horizons [4] - UBS recommends a diversified asset portfolio that includes 14% to 15% in alternative investments, alongside mid-term bonds and cash [4] Group 3: Gold Asset Allocation - Gold is viewed as a long-term investment rather than a short-term speculative asset, with central banks expected to purchase 900 to 950 tons of gold in 2025, maintaining a strong demand [5] - UBS forecasts a target gold price of $4,200 per ounce in the next 12 months, suggesting a 5% allocation to gold with a strategy of gradual investment rather than lump-sum purchases [5] Group 4: Art Collection - Wealth management encompasses not only financial investments but also personal and family needs, with art collection becoming a significant aspect of family legacy and value expression [6] - High-net-worth individuals are projected to allocate 20% of their wealth to art by 2025, with Chinese ultra-high-net-worth individuals leading at 44% [6] Group 5: Wealth Management Strategy - UBS aims to assist clients in achieving the "3L" goals: Liquidity, Longevity, and Legacy, with over $6.9 trillion in global investment assets [7] - The firm has over 15 years of experience in wealth management for high-net-worth clients in China, utilizing differentiated services through UBS Securities and UBS Switzerland [7] Group 6: Greater Bay Area Strategy - UBS emphasizes the importance of functional collaboration and institutional integration in the Greater Bay Area, leveraging Hong Kong's status as a financial hub to enhance cross-border business [8] - The firm focuses on serving high-net-worth and ultra-high-net-worth clients in China while connecting them to global opportunities [8] Group 7: Unique Value Proposition - UBS differentiates itself from other brokers and banks by offering unique value propositions and service dimensions [9]