Reports

Hywin Holdings Chalks Up Rapid Revenue, Income Growth

Tom Burroughes, Group Editor, 15 October 2021

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The Chinese wealth house has reported a stellar year for growth in revenues and income, as well as building its status as a prominent player in its field.

Hywin Holdings, the Chinese wealth management service provider, yesterday said that it had logged a 42.8 per cent jump in net revenues in the financial year ended 30 June from a year before, reaching RMB1.83 billion ($284 million).

Net income rose 95.6 per cent to RMB2.08 billion, the firm said in a statement. (For a previous report on the firm's results, see here.)

The Asian wealth management firm - which has partnered with Liechtenstein-based VP Bank as part of its strategy - has grown rapidly, tapping into demand for service around the complex needs of HNW and UHNW individuals and families in Asia. Its business moves come in a year that has seen the launch of the Greater Bay Area Wealth Management Connect regime, which tightens financial links between mainland China, Hong Kong and Macao.

Among recent developments, Hywin said that it had launched the “Hywin Global Health Care Fund” with two purposes: channelling Asia’s capital into leading companies in life science, healthcare, and healthtech around the globe to generate sustainable investor value; and introducing outstanding global healthcare offerings and services into China, to create substantial health improvements for the populace.

Asset management has stood out as a driver of growth, the business said. 

“Our asset management business is above and beyond the classic investment management model,” Wang Dian, chief executive of Hywin Holdings, said. “It’s a new framework to help our clients pursue investment returns, plan generational succession, and accomplish family aspirations. Our asset management business is also an important lever for converting China’s wealth growth into significant recurring income for the firm, and enhancing long-term shareholder value.”

In order to serve ultra-high net worth clients in Asia, Hywin Asset Management (Hong Kong) Limited was among the first Chinese financial institutions to launch the “external asset management (EAM),” Hywin said. This business is supported by Hywin’s strategic partner - VP Bank, the Liechtenstein-based private banking group.

Another of Hywin's asset management hubs – Hywin Global Multi-Strategy Fund SPC – focuses the asset management services for HNW clients, with a growing suite of thematic funds including “Hywin Global Greater China Long Short Fund,” “Hywin Global PE Fund,” and “Hywin Asia New Dividend Income Fund,” among others, it said. 

The firm has also joined the The Hong Kong LPF Association, an advocacy body formed by asset managers, banks, and professional services firms in Greater China to promote the growth of the limited partnership fund regime of Hong Kong.

In August Hywin Holdings appointed Wai Lok (Lawrence) as chief financial officer.  

In July 2019 Liechtenstein’s VP Bank said that it planned to build a joint wealth management platform in Hong Kong with Hywin Wealth Management (China). In 2017, Hywin Capital (UK), part of Hywin Holdings, bought Azure Wealth, a UK-based wealth management house, adding to its roster of activities in this sector across mainland China, Hong Kong, the US and UK. This is an example of how such Chinese organisations are building wealth management business pacts around the world. 

See here for a report about Hywin's IPO, held earlier this year.

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