China’s Affordable Luxury Market Continues to Grow in Size
When most ponder our Rise & Fall of the Middle-Class theme they tend to think of rising disposable incomes in the emerging markets and especially China. With roughly 1.4 billion people, a rising middle class that is trading in lifestyle is a powerful tailwind. But there is an even smaller and more upwardly mobile group of wealthy Chinese that is driving demand for high-end homes, cars, travel and other services as part of our Emerging Wealth investment theme
The number of wealthy Chinese with a net worth of 100 million yuan (US$16 million) or more maintained double-digit growth, and healthcare now tops their biggest concern, according to the Hurun Report.
Despite a slowdown in the economy, surging home prices in first-tier cities drove 10.7 percent growth in the number of Chinese high net worth individuals (HNWI). There are now about 89,000 ultra-rich worth 100 million yuan or more in the country, about 11,000 more than last year, a growth rate of 14.1 percent.
The Southern province of Guangdong overtook Beijing for the first time as home to the biggest number of wealthy individuals, with 240,000 who have 10 million yuan or more, a growth rate of 17.65 percent. Guangdong, Beijing, Shanghai and Zhejiang had a total of 843,000 individuals with 10 million yuan or more, accounting for 63 percent in the nation.
Source: Chinese ‘ultra-rich’ hits 89,000: Hurun Report- China.org.cn
