Following the introduction of the concept and theme of the "2016 Year of Asset Allocation" by Worldway Immigration Group at the beginning of this year, major domestic investment markets have sounded the call for overseas asset allocation. The "2016 Year of Asset Allocation" promotional theme proposed by Worldway has rapidly fermented in the domestic market, sparking widespread attention from investors and the media. Currently, overseas asset allocation has become a trend sweeping through the Chinese capital market, yet some still have questions: Do Chinese investors really need overseas asset allocation? What is the fundamental reason for this?
Question: Is international asset allocation necessary for Chinese investors?
With global market volatility and a sharp decline in the prices of global risk assets, traditional safe-haven assets such as gold, government bonds, insurance, and real estate are highly sought after. Some people choose to allocate overseas assets out of rational choice, some follow the trend blindly, and others are still "holding cash and waiting." For these people, they are mostly hesitating over one question: Is the internationalization of asset allocation necessary for the asset allocation of today's Chinese investors?
Status Quo: The proportion of overseas asset allocation among Chinese is low
For overseas asset allocation, China has just started. If we make a horizontal comparison, we will find that the proportion of overseas asset allocation among Chinese is not high. The current overseas asset allocation of households in developed countries is about 15%, and in some countries it is even higher. For example, in Singapore, because its own market is too small and the capital market is developed, one can invest globally without leaving home, so the proportion is as high as 37%. However, the overseas asset allocation of Chinese households is currently only about 4%~5%, which is far lower than that of developed countries.
It is the right time for Chinese to allocate overseas assets
Looking at global financial and economic trends, the Federal Reserve has raised interest rates, the US dollar shows a strong upward trend, the euro exchange rate has reached a 12-year low, and China's foreign exchange reserves have fallen to a 3-year low. Especially since the central bank adjusted the RMB central parity rate last August, the RMB fell by 4% within two days. In November, the RMB joined the SDR and may continue to decline. At this juncture, converting RMB assets into overseas assets is a very wise and correct decision.
Expert Advice: How to allocate global assets?
Mr. Li Daokui, Director of the Center for China and the World Economy at Tsinghua University and doctoral supervisor at the Tsinghua University School of Economics and Management, pointed out: Chinese investors should lay out their investment types and products on a global scale and should not be limited to one place. Because Chinese investors already have a large amount of assets, they need diversified products to hedge risks, not only to hedge personal wealth risks, but also to hedge the property risks left to their children.
In addition, it is worth noting that: planning international assets requires a medium-to-long-term strategic vision; one should not be eager for quick success or pursue short-term benefits. Funds invested in international markets should be idle funds that will not be used in the short term. Allocating funds abroad is a long-term strategy and a long-term directional decision; one must avoid being influenced by short-term information, news, or hype.
Investment immigration is the preferred choice for overseas asset allocation
In 2016, Worldway launched the Year of Asset Allocation, believing that China has entered a new stage of "capital going global." Investing in the world, looking globally, and thinking about personal asset allocation on a global scale will inevitably become the theme of investment immigration in 2016. Especially in recent years, investment immigration projects represented by the United States, Europe, and the Commonwealth have become the preferred choice for investors' overseas asset allocation.
Worldway immigration experts point out: EB-5 investment immigration can not only allocate RMB assets into US dollar assets and obtain a high-value green card, but also realize international asset allocation; investing in European manors and manor real estate can not only allow investors to obtain the immigration status of EU countries, but also allow Chinese investors to purchase scarce land resources that money cannot buy in China. It has great appreciation potential and will become an excellent project for immigrating to Europe, realizing family wealth inheritance, and enjoying a pastoral lifestyle; the passport projects and investment citizenship projects of Commonwealth island nations in the Caribbean and South Pacific are essentially converting RMB assets into US dollar assets, providing a new asset allocation option for the vast number of investors.
[Special Note] Worldway Group has been deeply engaged in US investment immigration for 10 years. Throughout June, we will grandly hold the 2nd US Immigration Month in China. Worldway will, as always, adhere to the philosophy of "service first, integrity-based operation," carefully select projects, professionally serve clients, and give back to the vast number of investors with more comprehensive and high-quality services. For more details, please log on to the official website: http://www.worldwayhk.com/ or call the Worldway Los Angeles customer service hotline at 001-626-522-6522 or the 24-hour hotline in mainland China at 400-138-2929 for consultation.
