According to new research by WealthInsight, China will carry on creating millionaires at a record rate. By 2017 the total number of Chinese millionaires is forecast to grow by 34%, to reach over 2.2 million.
Over the last decade, China has grown by more than 8% on average each year in terms of GDP, successfully positioning itself as the world’s second largest economy. It credited a growth in its capital markets’ development and reduced poverty among its population. Thousands of Chinese nationals became millionaires rapidly and according to WealthInsight, China could soon overtake Japan.
In the last five years, the number of millionaires in China rose by 90 percent to reach 1.4 million by the end of 2012. Multimillionaires, those with a net worth of US$30 million or more, went up 106 percent to 9,087.
Despite a global recession and regional economic volatility, Chinese millionaires held US$5.2 trillion which represented 27% of the country’s wealth in 2012. This is expected to reach US$9.4 trillion in 2017.
"As China’s economic rise has seen the country transformed, a new class of millionaires has emerged. Huge wealth creation coupled with visible consumption as Chinese high net worth individuals want to show they are successful", says Lorna Chellapermal, analyst at WealthInsight.
Chinese millionaires are the prime target for luxury goods marketers from cars to jewellery and collectibles to gourmet goods.
"In the light of the recent financial turmoil, Chinese millionaires have proved exigent and demand transparency in their investment decisions."
687 multimillionaires live in Shenzhen, China’s most successful city in terms of GDP growth with a vibrant economy. This makes Shenzhen the third largest city for multimillionaires after Shanghai (1,028) and Beijing (1,387).
For more information please see attached white paper: ‘China – The dynasty of millionaires’