Why would a US-based company want to create an Individual Investment Advisory Firm in China (pros/cons)?
I would like an answer to this question since I’m working on a research paper entitled: Building a system/process to manage wealth in China.
Regards, Tom Newell.
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February 29th, 2008 at 12:53 pm
This is very simple , the individual advisor can
act as a sole agent and only colect the necessary
information which can be usefull for the company
and report it time by time .
This may cost them more money but they can gain
more later .
February 29th, 2008 at 2:13 pm
There is an ever-growing in China in all apsects, including as a possible trade frontier. The key word here would be “frontier”. And where there is a frontier, there will always be a perception for trade opportunity.
Given China’s volatile political and economic past, China as an investment platform would typically be considered high-risk, and the appropriate trade profile in one’s portfolio would be generally be in the “high-risk, high-gain” category.
With an internal GDP growing at 7% annually - or even more provided little to no government intervention - China offers loads of opportunity to outside investors. The establishment of an investment advisory firm makes complete sense.
February 29th, 2008 at 5:50 pm
Siavosh Pahlevani is correct. By establishing an individual investment advisory firm can gain more understanding and more information that can be useful to the company.
It is time consuming and costly. In addition, there are significant cultural and political differences that come into play.
March 25th, 2008 at 4:37 pm
i am also working on research in the wealth management sphere in china - might be interesting to compare notes.