China: most prosperous households 2023

chiny24.com 1 year ago

For the fifteenth time, ShangHai HuRun Investment Management Consulting Co., Ltd. (chin. 上海胡润百富投资管理咨询有限公司), a British think-tank based in Shanghai published a study on household property in China – HuRun Wealth study 2023 (chin. 2023胡润财富报告).

The holdings were divided into 4 groups:

with a property of RMB 6 million (about PLN 3,32 million);
RMB 10 million (about PLN 5,53 million);
100 million RMB (approx. PLN 55, 34 million);
USD 30 million (about PLN 120.09 million).

The epidemic, the changes in the global geopolitical scenery and the uncertainty about global economical improvement caused wealth of wealthy households in China for the second time in 15 years (formerly in 2019) to decrease by 3.6% last year compared to 2022.

The most wealthy families live in the Yangtze River Delta region (chin. 长三角地区), then in the large GuangDong-HongKong-Macau Bay region (chin. 粤港澳大湾区). The provinces of JiangSu, FuJian, ShanDong and Taiwan followed.

In large Chinese cities, the most wealthy families live in Beijing, Shanghai, Hong Kong, SheZhen, GuangZhou, HangZhou, NingBo, Taipei, SuZhou and FoShan.

So the wealthy are everywhere infrastructure and economy developed, and life is the most comfortable. 67% of wealthy households are located in the country's 30 largest cities.

In the last 15 years, the number of specified farms in China has doubled.

households with 6 million RMB and more

According to the study there are 5.14 million of them in China (including Hong Kong, Taiwan and Macau). The most families with specified wealth live in Beijing, followed by GuangDong Province, Shanghai, Zhejiang state and Hong Kong Province. In total, their property amounts to 1,58 trillion RMB (about PLN 874,84 billion).

households with RMB 10 million and more

In China, as estimated, there are 2.08 million specified families. Most of them live in GuangDong, Beijing, Shanghai, Zhejiang and Hong Kong provinces.

52% of families in this group are business owners.
61% of their assets are assets of companies.
In addition, they have investment assets (cash and any transferable securities) with an average value of RMB 1.8 million (approx. PLN 996.81), have housing units or houses with a value of over RMB 5 million (approx. PLN 2.77 million).
34% in this group are top-level managers of large companies and global companies, enjoying advanced and steady income. 57% of their assets are cash and securities. In addition, the property has an average of 7 million RMB (about PLN 3.88 million).
8% are professional investors dealing with financial investments specified as shares, bonds and futures. Cash and transferable securities account for 63% of their full assets. On average, they own properties for more than 6 million (about PLN 3.32 million).
6% of their assets come from real property investments. They usually have a few. The property accounts for 58% of their full assets, with an average value of over RMB 10 million (about PLN 5.53 million), while cash and transferable securities account for little than 10% of the assets.

households with RMB 100 million and more

There are 133,000 families in China. Most of them live in Beijing. Then in GuangDong Province, Shanghai, Zhejiang state and Hong Kong Province.

79% of the members of this group are owners of companies. The assets of their corporations account for 71% of all their assets. They have 18 million RMBs (about PLN 9.96 million) assets that can invest (cash and any transferable securities) and properties account for 13% of their full assets.
14% are professional investors. Cash and shares account for 80% of their full wealth and real property investments account for 20% of their assets.
7% are real property investors, which account for over 70% of their full assets.

international households (foreign and mixed),

whose pants are USD 30 million and more,

a located (resident) in China. This group is most represented in Beijing. Then in Shanghai, GuangDong Province, Zhejiang and Hong Kong.

The inheritance of the property has become an crucial subject for these families for respective years. The HunRun study estimates that within the next 10 years the families will transfer to the next generation assets worth 21 trillion (about PLN 11,63 trillion). 49 trillion RMB (approx. PLN 27.13 trillion) will be transferred to heirs over the next 20 years, and 84 trillion RMB (approx. PLN 46.65 trillion) over the next 30 years.

Affluent households on average have a house/house area of 280 square meters, consisting of 5 household members, have 2 cars and 4 branded watches. They like to collect jewelry, watches and wine, enjoy 23 days of vacation a year, love travel and good food. Their first investment choice is gold. abroad assets are 1 sixth of the assets, mainly limited to Hong Kong and Singapore.

All in a socialist state.

Source: