Real estate investments are the top source of Chinese family wealth, forming the basis of the riches of nearly a third of affluent families, a survey reveals.
Some 29% of wealthy families in China made their fortune from property investment – twice the global average.
This was followed by consumer discretionary investments, driving wealth for 13% of those surveyed, and industrials at 13%.
The survey from UBS was conducted last year with 76 respondents from ultra-rich Chinese families with an average net wealth of £720m (6.5 billion yuan).
In the previous 12 months these family offices reported returns of 14% from direct investments and 9% from REITs, against an average portfolio return of 11%.
However, over the next 12 months, almost half of these families (46%) will seek to reduce their investments in direct real estate.
A number of interviewees raised concerns about the sustainability of China’s rising property prices. Some 90% said they would consider investment outside China.
The Chinese Family Office and Wealth Management Report 2020 was released jointly by Campden Wealth, UBS, FOTT and AVIC Trust.
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