According to a report by Julius Baer Group Ltd, Chinese high net worth individuals will be ahead of world’s HNWIs in the field of investing in their offspring’s education.
According to Swiss private banking group estimates, there are around 1.4 million HNWIs in China, worth in total $8.7 trillion.
Stefan Hofer, an emerging market economist and lead author of the report, made a prediction that more high net worth individuals will appear in the next several years. This tendency will be supported by a stable yuan exchange rate and most likely won’t be effected by a slowdown in the economic growth rate.
It was mentioned in the report that the price of a tertiary education at a prestigious institution is growing faster than any other luxury item. Nevertheless, it said, wealthy Chinese parents are keen to pay.
Kaven Leung, CEO North Asia of Julius Baer, said that Chinese parents have a strong concern about the next generation, and they acknowledge the importance of developing strong connections with the wider world.
Zhuang Xiaoquan, a book retailer in Hangzhou, absolutely agrees with this assessment, and last year he sent his daughter to a girls-only independent boarding school in the UK. He considers the expense of his daughter’s education – approximately £10,000 a term – a long-term investment, which will ultimately pay for itself, once his daughter finds an interesting and satisfying job.
