China’s Mainland has over 875,000 MultiMillionairesAugust 24, 2010
The Hurun Research Institute published the 2010 Hurun Wealth Report today for the second consecutive year. The report analyses the number and distribution of China’s wealthy across the nation’s major cities and provinces.
The report shows that there are 875,000 people with more than RMB 10million (EUR 1.1M / USD 1.47M) in China today, an increase of 6.1% from last year. This growth has occurred against a background of strong economic performance in China’s economy. GDP grew by 8.7% in 2009 to RMB 33.5trillion, and the Shanghai Composite Index rose over the same period from 2300 points to 3000, an increase of 30%.
According to Chinese government statistics from February 2010, house prices rose 10.7% over the past year.
Beijing, as home to 150,000 millionaires, was the place with more rich people than anywhere else.
Guangdong was in second place with 145,000 and Shanghai came in third position, with 122,000. These people accounted for 48% of China’s total.
“The findings of the Report show that there are 1900 people with the equivalent of EUR 110billion in China, which is twice the number of people included on the 2009 Hurun Rich List.” said Hurun Report founder Rupert Hoogewerf.
“This suggests that there is a hidden class of low-key rich, who keep their heads below the parapet”.
The minimum threshold for inclusion was RMB10 million, based on all private wealth including privately-held businesses, principal private residence and art collections.
The range of assets considered sets the Hurun Wealth Report apart from the methodology of Merrill Lynch and China Merchants Bank’s studies, which only measure investable assets.
The average age of China’s wealthy is 39 years of age. On average, they are 15 years younger than their counterparts outside of China, and their wealth is growing more rapidly.
The male to female ratio is 7:3. They made their money primarily from the service, property and manufacturing sectors, and they are super-confident about China’s economic outlook.
“China’s millionaires are becoming increasingly sophisticated in the way they spend their money, and at a remarkable pace” said Hurun Report founder Rupert Hoogewerf.