An Investigation of the Demand for Financial Advice in China's Retail Investment Markets

In recent years, there are more and more investment products available on the Chinese financial retail market. Such as bonds, unit trusts, life and health insurances, futures and foreign currencies etc. They are relatively new and complex to ordinary Chinese individuals. It is not easy to just understand all these products, how to use them is even harder. So people start to consider: maybe I should ask a professional investment advisor in person. The role of Financial Advisor was existed for over 30 years in those developed western countries, their financial advisory markets are therefore very well developed and mature. For example, in the UK we have IFA - Independent Financial Advisor; in America, they have CFP - Certified Financial Planner. Compare to China, it has only started. In early 2003, the Ministry of Labour and Social Security of China has promulgated "The National Standards for Financial Planners", it marks Financial Planner as a new and raising profession in China. The first experimental professional financial planners' training course began in July 2005 which enrolled only 50 trainees after strict selection. This study investigated new empirical insights into the consumer demand for financial advice in China's retail investment markets, particularly private professional financial advice