"Post-90s" become the new main force of high-net-worth individuals, accelerating the reshaping of the private banking landscape

How Do Tech IPOs Foster a New Wealthy Class Among the Post-90s Generation?

With the accelerated development of the tech industry and the continued vibrancy of the capital markets, the structure of high-net-worth individuals in China is undergoing significant changes. Data shows that the overall trend among high-net-worth individuals is becoming younger, especially with the rapid increase of the post-90s cohort, which is gradually becoming an important force in the wealth market. Against this backdrop, the development path of private banking services in banks is also adjusting, shifting from a focus on “scale expansion” to an emphasis on “in-depth management,” evolving from single product sales to a comprehensive service system covering asset allocation, wealth inheritance, and cross-border arrangements. Meanwhile, financial institutions are accelerating the enhancement of their capabilities, continuously improving offshore wealth management and comprehensive service capabilities around global asset allocation and multi-jurisdictional arrangements.

The Trend of Younger High-Net-Worth Individuals Accelerates

On March 20, the Shanghai Stock Exchange accepted the IPO application of Yushu Technology for the Sci-Tech Innovation Board. As a leading company in the humanoid robotics sector, its listing is expected to not only create the “first humanoid robot stock in A-shares,” but may also release significant wealth effects in the short term, spawning a new group of high-net-worth individuals primarily composed of core technical personnel and entrepreneurial teams.

The prospectus shows that the company’s core technical team is mainly composed of individuals from the post-90s generation, with employee stock ownership accounting for over 10%. Under the equity incentive mechanism, as the IPO progresses, potential paper gains are likely to accelerate into realizable wealth, forming new wealth concentrations in certain regions. This pathway is a typical reflection of the structural evolution of high-net-worth individuals in China in recent years.

In recent years, against the backdrop of continued activity in IPOs on the Sci-Tech Innovation Board, Hong Kong, and U.S. stock markets, a group of “tech nouveau riche” represented by researchers, engineers, and entrepreneurs is rapidly emerging. For example, in Hong Kong, the number of new listed companies is expected to reach 119 by 2025, with total IPO fundraising amounting to HKD 285.8 billion, an increase of over 220% year-on-year. From an industry perspective, high-growth sectors such as software services, new energy, and medical devices are performing exceptionally well. Entering 2026, this trend continues, with companies like Wallen Technology, MiniMax, Zhipu, and Tiannumber Smart Core successively filing or advancing their listing processes, continuously supplying the market with a new generation of “tech elites.”

Against this backdrop, multiple surveys indicate that China’s high-net-worth individuals are showing significant youth characteristics. Currently, the average age of high-net-worth individuals has dropped to about 35 years, with the proportion of individuals under 35 continuously increasing, a substantial portion of whom come from founding teams of tech companies or early investors. Particularly, the post-90s cohort has rapidly increased its share in recent years, becoming a core target group for wealth management institutions. A report released earlier this year by Hurun Research Institute, titled “Quality of Life Report of High-Net-Worth Individuals in China,” indicates that the average age of surveyed high-net-worth individuals is 36 years, with those under 35 (the post-90s) accounting for 51%.

Grace Liu, Chief Operating Officer of Legacy Trust Company (Hong Kong), stated in an interview that, from the perspective of client structure, post-90s clients are gradually entering the trust service system. “Many post-90s individuals have already started to establish trusts, and their wealth scales are not small.” She noted that these clients are primarily concentrated in the tech, software, and internet industries, mostly first-generation entrepreneurs who have achieved success. “Compared to when I first entered the industry, when most clients were from the post-50s and post-60s, today’s clients are clearly younger, and this change is very apparent.”

Private Banking Services Accelerate Adjustment

The changes in the structure of high-net-worth clients, coupled with fluctuations in the capital markets, are driving a divergence in the growth models of private banking services.

On one hand, some banks continue to follow a development path oriented towards expanding the number of clients. From the disclosed performance for 2025, several institutions show a characteristic of “rapid client growth but slowing growth in Assets Under Management (AUM).” For example, as of the end of 2025, Ping An Bank had 105,600 private banking clients, a year-on-year increase of 9.1%, but its AUM only increased by 0.8% year-on-year, a noticeable slowdown compared to previous years.

On the other hand, banks are gradually downplaying their reliance on AUM scale expansion, shifting their emphasis to asset allocation capabilities, comprehensive service capabilities, and long-term client stickiness. “Unlike traditional wealth accumulation that depends on real estate and heavy assets, the wealth of emerging client groups is more derived from equity and options, which have greater price volatility and are more reliant on capital market pricing,” an industry insider told reporters.

Grace Liu also pointed out that young high-net-worth clients are showing significantly increased proactivity in wealth management: “They usually start planning their wealth management earlier rather than responding to problems after they arise.” In her view, this generation of clients generally possesses a stronger global perspective and forward-looking planning awareness, “not only focusing on domestic asset allocation but also considering arrangements across different jurisdictions and the long-term design of asset structures.”

At the same time, it is noteworthy that ESG (Environmental, Social, and Governance) investments are gradually becoming an important allocation direction for the new generation of high-net-worth individuals. Since 2025, the scale of ESG-themed financial products has been continuously growing, reflecting young clients’ recognition of sustainable investment concepts, and prompting banks to accelerate the introduction of related asset classes into their product systems. According to the “Annual Report on China’s Banking Wealth Management Market (2025)” released by the Banking Wealth Management Registration and Custody Center, the outstanding balance of ESG-themed financial products reached 311 billion yuan by the end of 2025, a year-on-year increase of 29.96%.

Against this backdrop, private banking services are gradually bidding farewell to the “scale expansion” era, shifting to a phase of in-depth operation. Among them, the “scientist client group” has gradually become a key target for private banks. For example, institutions like Industrial and Commercial Bank of China and Citic Bank have built exclusive service systems around tech entrepreneurs and researchers, enhancing their comprehensive service capabilities through public-private collaboration, equity services, and industry resource connections.

Banks are also accelerating organizational restructuring. Since the beginning of 2026, more than ten listed banks have newly established or restructured departments related to wealth management. For instance, Bank of Communications has set up a Wealth Management Department at the headquarters level, with the head of private banking concurrently serving, strengthening the overall resource coordination of the bank. These measures reflect the rising position of wealth management in the overall strategy of banks. “Essentially, it is a shift from ‘selling products’ to ‘doing allocations,’ and further towards ‘comprehensive services covering the entire client lifecycle,’” a wealth management professional from a joint-stock bank stated.

In terms of resource allocation, banks are increasing investments in investment advisory systems, family trusts, and cross-border asset allocation capabilities. On one hand, through the introduction of talents from wealth management subsidiaries and asset management institutions, they are strengthening their asset allocation and research capabilities; on the other hand, by improving tools such as family trusts and insurance trusts, they are enhancing wealth inheritance and risk isolation functions.

Enhancing Offshore Wealth Management Capabilities

The changes in wealth forms are forcing upgrades in service capabilities. Industry insiders point out that for the “tech nouveau riche,” whose main sources of wealth are equity and options, how to convert “paper wealth” into configurable and liquid assets has become a core issue. This process involves a series of professional services such as restricted stock custody, pledge financing, and liquidity management, placing higher demands on banks in terms of product design, risk pricing, and risk control systems.

At the same time, institutions are also accelerating the enhancement of related capabilities. For example, Standard Chartered Group recently proposed to expand the team serving Chinese high-net-worth clients in Singapore, enhancing offshore wealth management capabilities to meet the growing demand for cross-border asset allocation. “More and more clients are beginning to inquire about offshore asset allocation, family trusts, and even identity planning. These needs cannot be fully covered by domestic systems alone,” Grace Liu stated.

The changes on the demand side reflect an increasingly globalized and diversified trend in asset allocation. The new generation of high-net-worth individuals tends to diversify risks through cross-border allocation, with their allocation range covering various assets such as overseas securities, private equity, and hedge funds; at the same time, the frequency of using offshore trusts and family offices has significantly increased to achieve multiple goals such as risk isolation, tax optimization, and intergenerational inheritance.

In this process, the choice of legal jurisdiction is becoming increasingly important. Grace Liu pointed out that Hong Kong, Singapore, and certain offshore jurisdictions are continually attracting the attention of high-net-worth clients due to their mature legal systems and flexible institutional arrangements. “Different jurisdictions have variances in trust look-back periods and asset protection rules, with some regions having advantages in asset isolation,” she stated.

(This article is sourced from Yicai Global.)