Asia Pacific Wealth Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Asia Pacific Wealth Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Wealth Management market in Asia Pacific is not only experiencing growth, but it is also maturing across several areas, including adopting best practices, automation, and streamlining of operational processes, as well as diversification in asset allocation. Asia is still far behind the rest of the world in deploying sustainable investment strategies but is moving quickly to meet client demand.

For asset management firms, risk reduction through efficient post-trade processing directly impacts the performance of their investment portfolios, as every marginal opportunity for savings delivers to the bottom line. Asset owners, especially pension funds, are focused on returns. In the current environment, wherein it is not easy to differentiate performance and returns, asset managers are even more fixated on operational efficiency and cost savings. In addition to fund performance, asset owners - partly a result of the evolving regulatory environment - are increasingly focused on principles such as governance and controls, protection of stakeholder interests, and safeguarding assets.

Across India, China, Japan, Singapore, Vietnam, Indonesia, Malaysia, and the rest of the Asia Pacific region, huge variations in the fund types and investment behavious of the country population. This geographical diversification of investments has resulted in funds with a larger exposure to currency settlement risk, while the allocation to offshore assets is increasing across pension funds and among insurers in the region.

Weakening GDP growth, high volatility, and significant capital-market losses globally and locally in Asia affected heavily how wealth-management firms operate. Investor wealth in Asian equity markets declined by approximately 10 to 15 percent (or approximately USD 2.5 trillion to USD 3.5 trillion) between February 1 and April 15, 2020. China, the first epicenter of COVID-19, suffered a swift drop in economic activity (a 13.5 percent decline year-on-year in industrial production in January and February 2020). Further followed by Chinese investors who accounted for approximately 35 to 40 percent of PFA in Asia, this initial recovery boded well for the region’s wealth-management industry

The adoption of best practices in operations and risk management would, in turn, attract greater investment in the asset management industry in Asia, thereby further fueling the region’s overall growth.

Dry powder in the Asia Pacific region reached 476.6 billion USD as of November 2020 and 1 year down the line, in November 2021, represents 25 percent of the global total. For venture capital and private equity firms, dry powder refers to the amount of committed but unallocated capital a firm has. Dry powder is a highly liquid asset. This steady increase in the Private Equity and Venture Capitals market has shown growth in the Asia-Pacific Wealth Management market. It is further expected to grow at a rising pace throughout the forecast period.

In 2021, China's National Equities Exchange and Quotations had a market capitalization of 2.28 trillion yuan. The market capitalization increased rapidly after 2014 and reached its peak in 2017 at almost five trillion yuan. A year later, the equity market had lost almost 1.5 trillion yuan in value. This was due to the bad investment climate in 2018 when stocks at the two big stock exchanges in Shanghai and Shenzhen lost around 24 percent in value. However, since then, the NEEQ was not able to recover. This was because the large exchanges attempted to increase their appeal to young companies. Therefore, boards like the ChiNext in Shenzhen and the StarA board in Shanghai posed serious competition to the equity exchange.

The Asia Pacific Wealth Management Market is growing and highly competitive across different countries like India, China, and Japan, offering a huge number of competitive players dominating the market, nowadays grabbing the market more powerfully by mergers and acquisitions and traditional investment opportunities are led by China Market has made the Asia Pacific Wealth Management Market very competitive and strong. International chains and brands, such as UBS and Balck Rock Investment Management firms, are widely famous and leading the market. Asia Pacific groups such as China Life, Franklin, ICICI, and Nikko Asset Management have been focusing on technology innovations and offering more platforms for wealth management, thus, leading the Asia Pacific Wealth Management Market for past long time.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support