Wealthy Chinese rise to 1.6 mln in past decade, up nearly 9 times - survey


Reuters

BEIJING, June 20 (Reuters) - The number of high net worth
individuals (HNWIs) in China  has risen nearly 9 times since a
decade ago, a private survey released on Tuesday showed, as
strong growth in the world's second-largest economy has spurred
wealth creation.
    Chinese with at least 10 million yuan ($1.47 million) 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 2014-2016.
    But the growth rate of China's private wealth market is
expected to decline to 14 percent in 2017 to a total size of 188
trillion yuan.
    Around 120,000 HNWIs had at least 100 million 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 United States, Australia and Canada although Hong
Kong's popularity fell 18 percent and the United States dropped
3 percent from 2015 to 2017.
    Respondents said their top three reasons for investing
overseas were to diversify investment risks, to capture market
opportunities of overseas investments and to migrate.
    Sixty-three percent of rich Chinese rely on financial
service providers to manage their domestic financial assets and
among them, around half use private banking services provided by
commercial banks.
    China's wealthy are concentrated in major cities and coastal
areas, the survey found, but now 22 Chinese provinces have at
least 20,000 HNWIs. Most respondents said their top priorities.
were "wealth preservation" and "wealth inheritance", in contrast
to 2009 when nearly half of HNWIs surveyed said "wealth
creation" or "quality of life" were their main goals.
     ($1 = 6.8166 Chinese yuan)

 (Reporting by Sue-Lin Wong and Shu Zhang; Editing by Jacqueline
Wong)
 ((sue-lin.wong@thomsonreuters.com; +86-10-6627-1242;
+86-139-1112-9340;))

Keywords: CHINA ECONOMY/WEALTHY



This article appears in: World Markets , Politics


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