China’s mil­lion­aires jump nine­fold in the past decade

The Star Early Edition - - OPINION & ANALYSIS -

THE NUM­BER of high net worth in­di­vid­u­als (HNWIs) in China has risen nearly 9 times since a decade ago, a pri­vate sur­vey re­leased yes­ter­day showed, as strong growth in the world’s sec­ond-largest econ­omy has spurred wealth cre­ation.

Chi­nese with at least 10 mil­lion yuan (R18.9m) of in­vestable as­sets hit 1.6 mil­lion in 2016, up from 180 000 in 2006, ac­cord­ing to the 2017 China Pri­vate Wealth Re­port by Bain Con­sult­ing and China Mer­chants Bank.

The over­all value of the pri­vate wealth market in­creased to 165 tril­lion yuan in 2016, grow­ing at 21 per­cent an­nu­ally in 20142016.

But the growth rate of China’s pri­vate wealth market is ex­pected to de­cline to 14 per­cent in 2017 to a to­tal size of 188trln yuan.

Around 120 000 HNWIs had at least 100m yuan worth of in­vestable as­sets, up from less than 10 000 peo­ple in 2006.

The per­cent­age of HNWIs with over­seas in­vest­ment in­creased to 56 per­cent in 2017, up from 19 per­cent in 2011, but the over­all per­cent­age of as­sets in­vested over­seas has sta­bilised since 2013.

The top five des­ti­na­tions for over­seas in­vest­ment were Hong Kong, the US, Aus­tralia and Canada, although Hong Kong’s pop­u­lar­ity fell 18 per­cent and the US dropped 3 per­cent from 2015 to 2017. – Reuters

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