China home to 383,000 super rich in 2010By IANS
Wednesday, December 29, 2010
BEIJING - Thanks to the booming capital and property markets, the number of super rich in China is expected to rise by 16 percent to 383,000 this year, a media report said.
China is estimated to have 383,000 individuals of high net worth this year, compared to 331,000 in 2009, according to China Private Wealth Report 2010 released Tuesday by Forbes China in association with China Construction Bank.
The report defines high net worth individuals as those with at least 10 million yuan ($1.5 million) in investable assets, which excludes primary residences and assets of poor liquidity, Shanghai Daily reported.
The number of super rich in China dropped to 249,000 in 2008 from 287,000 in 2007 as a result of the global financial crisis.
However, ample liquidity due to the government’s four trillion yuan stimulus package and fast rising money supply triggered a rally in stock and house prices.
Though China is now tightening its monetary policy, the easing in Western nations may still see money and credit flooding to China’s markets in the next quarter, the daily said.
But China’s super rich are facing a problem in maintaining the value of their assets, 60 percent of which are related to finance, the report said, adding that inflationary pressure and uncertainties in the property market and global economy will make wealth management more difficult in 2011.
The super rich are taking a bigger share in total investable assets held by all individuals in China, Forbes said.
The investable assets held by the super rich totalled 18.3 trillion yuan, or 21.4 percent of the nation’s total, in 2009 and may reach 22.4 trillion yuan, or 22.4 percent of total, this year.
The bulk of the super rich were born in the 1960s and 1970s, with 11.8 percent born in the 1980s, the report said.
More than three quarters of them are men and more than 84 percent are married.
By industry, most of the super rich are in manufacturing and trade businesses, reflecting China’s role as the world’s factory. Some 12.3 percent are in the financial business and 11.6 percent in real estate, the report said.
By region, Guangdong province is home to nearly 80,000 of the super rich, with Zhejiang in second place (40,000), followed by Jiangsu, Beijing, Shanghai and Fujian.
More than 60 percent of the super rich generated their wealth from running a business, and other main sources of wealth included salary, dividends, and investments in stock and property markets.
More than 75 percent are from private-sector companies.