China is now fourth in the num­ber of mil­lion­aires

China Daily (Latin America Weekly) - - Front Page - By LYUCHANG lvchang@chi­nadaily.com.cn

The na­tion stands fourth in the global rank­ing of US dol­lar mil­lion­aires fol­low­ing the United States, Ja­pan and Ger­many, which to­gether ac­count for 60 per­cent of global mil­lion­aires, said France-based Capgem­ini and the Royal Bank of Canada.

The an­nual wealth re­port is the lat­est of many sur­veys, high­light­ing the growth of the wealthy in the Asia-Pa­cific re­gion, de­spite con­cerns over slow­ing growth in the world’s sec­ond-largest econ­omy.

The num­ber of people with at least $1 mil­lion in liq­uid as­sets in China reached about 750,000, com­pared to 4 mil­lion in the US, Ja­pan’s 2.3 mil­lion and Ger­many’s 1.1 mil­lion, ac­cord­ing to the sur­vey.

Chi­naandJa­pan, the only two Asian coun­tries that made into the top five, con­trib­ute the most to Asia’s grow­ing wealth pool, which took ex­perts by sur­prise due to the eco­nomic slow­down in both coun­tries.

“If you look at Ja­pan’s eco­nomic sit­u­a­tion af­ter the dis­as­ter at the Fukushima nu­clear power plant, it finds it­self fac­ing huge costs in terms of clean­ing up and re­build­ing,” saidLuJiny­ong, a pro­fes­sor at theUniver­sity of In­ter­na­tional Busi­ness and Eco­nom­ics in Bei­jing.

“But prob­a­bly be­cause of that, it is now con­sid­er­ing a green fu­ture, pro­vid­ing huge busi­ness op­por­tu­ni­ties in the field of new en­ergy and other in­dus­tries ben­e­fit­ing from the govern­ment’s stim­u­lus, which its en­trepreneurs can cap­i­tal­ize on.”

The re­port said that the Asia-Pa­cific re­gion will re­place North Amer­ica to be­come the world’s largest wealth man­age­ment mar­ket thanks to the boom­ing hous­ing mar­ket in Asia, Ja­pan’s stock mar­ket, and rapid growth in China.

Asia’s mil­lion­aire pop­u­la­tion sur­passed that in Europe for the first time in 2009, and in 2011 it edged out North Amer­ica for the top spot, ac­cord­ing to pre­vi­ous edi­tions of the re­port.

“Surg­ing stock prices re­ally helped many people change from mil­lion­aires to bil­lion­aires, es­pe­cially when many start-up com­pa­nies were look­ing for IPOs in China,” Lu said.

In 2013, the Asia-Pa­cific re­gion came close in the mil­lion­aire race to North Amer­ica, which still re­mains the world’s wealth­i­est re­gion, with an in­crease of 17 per­cent to reach $14.88 tril­lion, the re­port said.

“Over­all, 2013 was an­other strong year for the high net worth mar­ket, with surg­ing eq­uity mar­kets and im­prov­ing economies con­tribut­ing to dou­ble digit growth in both pop­u­la­tion and wealth lev­els,” said M. Ge­orge Lewis, group head of RBC Wealth Man­age­ment & RBC In­sur­ance. “Look­ing at longer term growth trends, nearly 40 per­cent of the cur­rent level of high net worth wealth has been cre­ated in the past five years alone.”

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