Ranks of China’s wealthy to grow

The ranks of China’s wealthy will again grow by double-digits this year but industry expansion will cool as economic growth slows and government oversight of financial products increases, a report said on Tuesday.

The 2017 China Private Wealth Report, by Bain Consulting and China Merchants Bank, put the number of high net worth individuals (HNWI)- with at least 10 million yuan ($1.47 million) of investable assets — at 1.6 million in 2016, nearly nine times the number a decade earlier.

The report, issued every two years, forecasts a slower growth pace for the wealth business this year, but still sees substantial gains.

It projects an 18 percent increase in HNWIs to 1.87 million by the end of 2017, and a 14 percent increase in China’s private wealth market to 188 trillion yuan from 165 trillion yuan. In 2014-2016, the market grew 21 percent annually, the survey said.

“Some asset classes like real estate are likely to have a larger impact on the slowing growth rate,” Liu Xin of Bain Consulting told reporters, adding that increased regulation and oversight of investment products including property, wealth management products and insurance will contribute to the slowdown.

According to the report, around 120,000 HNWIs had at least 100 million yuan worth of investable assets, compared with fewer than 10,000 people in 2006. (RTRS)