Number of wealthy Chinese keeps rising
June 26, 2017 Category Macro-economy, Weekly
The ranks of China’s wealthy will again grow by double-digits this year. The 2017 China Private Wealth Report by Bain Consulting and China Merchants Bank (CMB) put the number of high net worth individuals (HNWI) – those with at least CNY10 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 for the wealth business this year, but still sees substantial gains. It projects an 18% increase in HNWIs to 1.87 million by the end of the year, and a 14% increase in China’s private wealth market to CNY188 trillion from CNY165 trillion. In 2014-2016, the market grew 21% a year, 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 said, 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 CNY100 million of investable assets, compared with fewer than 10,000 in 2006. The percentage of HNWIs with overseas investments increased to 56% this year, from 19% in 2011, but the overall percentage of assets invested overseas has been stable since 2013. The top five destinations for overseas investment were Hong Kong, the United States, Australia, Canada and Singapore although between 2015 and this year Hong Kong’s popularity fell 18% and the United States dropped 3%, the Shanghai Daily reports.
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