Do cultural differences affect the way ultra-rich individuals from different Asian countries view risk?
There is a difference, and it is particularly evident when comparing Hong Kong with emerging markets such as China and India. Hong Kong’s ultra-high-net-worth are relatively sophisticated and have reached a stage where their money is more professionally managed by family offices. China and India are picking up in terms of professionalising their wealth management. One of the main challenges for the ultra-high-net-worth in these two countries is that most of the family wealth is still linked to their own companies. Therefore, diversifying this concentration risk and adopting an asset allocation approach to managing their wealth is critical for the long term. We are starting to see family offices being set up in both countries, especially China, given the rapid wealth creation over the last two years.
