Noah Holdings
Q2 2022 Earnings Call
Aug 22, 2022, 8:00 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good day, and welcome to the Noah Holdings second quarter 2022 earnings conference call. All participants will be in a listen-only mode. [Operator instructions] After today's presentation, there will be an opportunity to ask questions. [Operator instructions] Please note this event is being recorded.
I would now like to turn the conference over to Ms. Jingbo Wang, CEO of Noah Holdings. Please go ahead.
Jingbo Wang -- Founder, Chairwoman and Chief Executive Officer
[Foreign language]
Unknown speaker
On the agenda of today's teleconference, I will first share my views on the macro environment, then introduce the overall performance of Noah in the second quarter of 2022, the development of our major business segments, and our overall strategy. Next, let's invite our group CFO, Pan Qing, to introduce the quarterly financial information, followed by a Q&A. In the past two years, the global real economy deleveraging and capacity reduction caused by the epidemic and the impact of the Russian-Ukraine war has exacerbated global inflation in the first half of 2022. China's continuous epidemic prevention and control policy has brought unprecedented challenges to the economic growth of core regions, including the Pearl River Delta and the Yangtze River Delta.
On one hand, the supply side has been impacted and the demand side has contracted significantly. On the other hand, expectations are weakening, the economy reached the bottom, and the market bottomed out in the second quarter. As the company is headquartered in Shanghai, more than 1,800 employees experienced a lockdown at home in the second quarter. We observed that the investment sentiment of high-net-worth families and private enterprise clients have changed significantly.
Improving the safety and liquidity of assets is the first demand of clients. At the same time, the global allocation needs of Chinese private enterprises and high-net-worth families have been significantly improved. Noah's judgment on client demand and asset allocation suggestions are stability first, survival of the city, and domestic and international dual circulation for Chinese enterprises and high net worth families. We suggest that clients started rebalancing their global asset allocation.
The ratio of Chinese and overseas asset allocation is 100 to 100. Domestic assets are allocated to the Chinese market and overseas assets are allocated to the international market. Chinese private enterprises do establish new brands or international headquarters in the overseas market and cultivate the international market completely independently. Domestic headquarters and international headquarters assume different functions.