Liechtenstein targets China for private wealth management

Known for its personal wealth management, Liechtenstein's banking sector manages 1 percent of the world's total cross-border wealth. The financial sector accounts for 27 percent of its total economy, which is higher than any other nation in the world.

A recent report by global consultancy firm PriceWaterhouseCoopers showed that China is the top target market for global private banks seeking new clients over the next two years.

LGT Group, the largest privately held private banking and asset management group in Europe, and run by the Liechtenstein royal family, is among the companies looking for opportunities in China.

"We do not currently have a private banking office in China, but we would certainly consider opening such an office when the time and opportunity are right," says Vicky Wong, head of key client solutions with LGT Bank (Hong Kong).

"Liechtenstein's private banking expertise is best manifested in its royal family because they have successfully managed and passed on their fortunes for more than 900 years," Wong says. The royal family has been rated as the richest in Europe, with assets of more than $7 billion.

"When Chinese families first acquire wealth, they focus on buying material goods or start working even harder to make their wealth grow even more," Wong adds.

"We, on the other hand, urge our clients to take a step back and instead focus on long-term goals. This includes the kind of legacy they want to leave for their family, their country and the world not just now, but 20, 50 or 100 years from now."