Quality Products International

Wealth Report on China’s rich

by on Apr.21, 2011, under China

There has been much talk of China’s growing prominence in the international economy and its growing wealth, both as a nation and as individuals.

It is leading to China becoming the key market for many luxury goods in a global market where so many countries are facing hardship.

QPI Ltd, has recognized continued the strong demand for gold and partnered with sources in West Africa to supply to Hong Kong.

This article quantifies China’s rich and super rich.

GroupM Knowledge – Hurun Wealth Report 2011

China has 960,000 ‘millionaires’ with personal wealth of 10 million Yuan or more (GBP 950,000/ EUR 1.1 million/ USD 1.5 million), up 85,000 individuals or 9.7% year on year.  In 2009, there were 825,000 millionaires, growing last year to 875,000.

“For most luxury brands, the Chinese luxury consumer is now Number One: either representing the biggest market share or the fastest-growing,” says Rupert Hoogewerf, Chairman and Chief Researcher of Hurun Report, a leading luxury business magazine in China. “The GroupM Knowledge – Hurun Wealth Report 2011 provides an insight into how wealth is spread around the country.”

Lucy Zhang, Futures Director of GroupM Knowledge, says that luxury consumption will remain the main driver of consumer market growth in China in the next 5 years. The burgeoning wealthy elite and their transforming consumption pattern fuel the prosperity of luxury industry. It has never been more important to understand the real rich people here.

Of the 960,000 millionaires, 55% derived their wealth from their private business.  20% are property speculators, who have ridden the fast hike in home prices. 15% are stock market gurus, who are also the youngest with an average age of 38. The remaining 10% are high earning salaried executives.The Chinese millionaire is born in 1972, and today is 39 years, a full fifteen years younger than their Western counterparts.30% of the millionaires are female.

China has 60,000 ‘super rich’ with 100 million Yuan or more, up 9.0% on last year.

Beijing leads the way with 10,000 individuals followed by Guangdong with 9,000 and Shanghai with 7,800.

The average age of the super rich is 43 years. These super rich tend to own three properties, five luxury watches and four cars. There has been a surge of interest in drinking fine wines and collecting art, especially Chinese classical art. This year they are looking to add a holiday home, with Sanya their destination of choice.

“There is still a great deal of hidden wealth in the Chinese economy,” said Rupert Hoogewerf. “We estimate there to be 4000 Renminbi billionaires in China, with only a third making the Hurun Rich List.”

See full Hurun Wealth Report

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