Chinese Wealth Growing in Double-Digits

Growing wealth in China (Picture: Shutterstock)

Growing wealth in China (Picture: Shutterstock)

A shift in personal interests reflects the fact that the Middle Kingdom also faces an aging demographic: healthcare displaced finance and investing as the top concern for wealthy Chinese.

Every wealth segment in China showed double-digit growth, flouting an economic slowdown, thanks to a surge in property prices in major Chinese cities, according to the latest «Hurun» Report.

China's high-net worth individuals, or those with more than 10 million yuan, grew by 10.7 percent on the year, or roughly 1.34 million people in total.

Guandong Usurps Beijing as Richest

The ranks of the ultra-wealthy grew even more sharply: China is now home to 11,000 more people with at least 100 million yuan than it was last year, or 89,000 individuals in total. This represents a breathtaking growth rate of more than 14 percent on the year.

The richest cities are Guandong, which overtook Beijing for the first time, with Shanghai in third place. China now leads the world for richest women, as finews.asia has previously reported.

Healthcare is Top Concern

The most favored investment types remain bank deposits, property, and insurance, which gained in significance for the rich compared to real estate in the last year.

Internet billionaire Jack Ma, acquisitive Dalian Wanda Property tycoon Wang Jianlin, Hong Kong's Li Ka-shing are among China's wealthiest individuals, according to previous Hurun reports.

A shift in personal interests reflect the fact that China also faces an aging demographic: healthcare displaced finance and investing as the top concern for wealthy Chinese. Sports was second, and the wealthy also expressed an interest in tourism and traveling as well as current events and news.

Health «Craze»

As a result, China's rich are taking an increasing interest in their old age and providing financially for themselves: nearly all of them – 95 percent – believe that social security won't meet their needs, and have taken out commercial insurance in order to maintain a lush retirement lifestyle.

«Social stigmas of retirement are also gradually shifting, such that Chinese high-net worth individuals are willing to discuss the topic, especially with the recent health 'craze'», Hurun chairman Rupert Hoogewerf said.

Increasing numbers of Chinese, especially women, are spurning traditional skinny images for more toned and beefed-up fitness looks, an indication that views on healthcare are changing.

Cradle to Grave

The rich's interest in senior living communities jumped by 87 percent, and was particularly strong in those aged under 35.

Fewer Chinese are opting for a retirement at home, and also no longer expect their children exclusively to provide for them. The picture painted by Hurun is of an active, open-minded retiree who wants to travel extensively.

The creation of so-called «one-stop-shop» funeral services including palliative healthcare, religious beliefs, and the desire to pass on family heritage to the next generation will be a major part of catering to the wealthy in the future, according to Hurun.

 

 

 

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