Jupai is a leading third-party wealth management service provider focusing on distributing wealth management products and providing quality product advisory services to high-net-worth individuals in China. With our network of 79 client centers in 43 economically vibrant cities as of December 31, 2016, we maintain extensive and targeted coverage of China’s high-net-worth population, one of the fastest growing in the world.
Jupai’s integrated business model features wealth management product advisory services and in-house asset management capabilities. Our comprehensive and personalized client service and broad range of carefully selected third-party and self-developed products have made us a trusted brand among our clients.
With an experienced and visionary management team, Jupai aspires to become China’s leading wealth management service provider with distinguished asset management capabilities.
We serve as a one-stop wealth management product aggregator, supported by our comprehensive and personalized client service delivered by experienced service professionals.
In addition to the products that we develop and manage in-house, we also source products from third parties. In 2015, we sourced third-party products from 18 domestic and four overseas product providers for recommendation to our clients. Product choices include fixed income products, private equity and venture capital funds, public market products and other products such as insurance products and tailored alternative investments. Jupai’s brand is built upon our rigorous risk management and product selection standards.
Our wealth management product advisory services are complemented by our ability to provide asset management services, which we started in 2013, in the management and advisory of real estate or related funds, other specialized fund products and funds of funds. As of December 31, 2016, the amount of total assets under our sole or shared management was RMB36.1 billion, compared to RMB12.5 billion as of December 31, 2015.
We target as our clients China’s high-net-worth individuals – defined as individuals possessing RMB 3.0 million (US$0.5 million) or more in investible assets including cash, deposits, stocks, bonds and other financial assets, but excluding primary residence. Our client base consists of entrepreneurs, corporate executives, certain professionals and other investors. During 2012, 2013, 2014 and 2015, we provided wealth management product advisory services to 1,090, 2,122, 4,678 and 8,572 active clients, respectively.
China has become one of the fastest growing countries in the world in terms of total wealth in recent years. According to exclusive market research commissioned by Jupai, China’s total wealth held by households was the largest in Asia, excluding Japan, and the third largest in the world, totaling approximately US$21.4 trillion in 2014 as measured by investable assets excluding primary residences. China's high-net-worth population is also one of the fastest growing in the world with a compounded annual growth rate, or CAGR, of 12.1% between 2008 and 2014, according to Jupai’s research. This population reached 5.4 million in 2014 holding approximately RMB 90 trillion (US$14.7 trillion) in total investable assets. Geographically, over 80% of China’s high-net-worth population is concentrated among three core economic regions in China, namely the Bohai Rim, the Yangtze River Delta, and the Pearl River Delta regions.
China’s high-net-worth individual wealth management services industry is at an early stage of development, characterized by low market penetration, increasing sophistication, a fragmented market and strong growth potential. Key market participants include banks, insurance companies, fund management companies, securities firms, and third-party wealth management service providers. In particular, third-party wealth management service providers had only approximately 1% market share in 2013, significantly lower than approximately 60% in the United States and 55% in the United Kingdom, according to the company’s research. This demonstrates significant growth potential for third-party wealth management service providers in China.