Personal wealth has increased in China despite a government crackdown on corruption and a slowdown of purchases on luxury items.
The annual survey of Chinese wealth shows that there were 40,000 more millionaires in China at the end of 2013, and now their number has reached 1.09 million.
The Hurun Research Institute study determined that there was a 3.8 percent growth in the number of Chinese with personal wealth of 10 million yuan, which translates to $1.6 million or one million in British Pound Sterling, in mainland China. The study showed that there are now 67,000 Chinese with personal wealth of 100 million yuan, which translates to $16 million, an increase of 2,500 from 2012.
The growth rate in millionaires increased from 2012 to 2013 despite the government’s public attempts to crack down on corruption among the wealthy business people of China.
According to Spectrem’s Affluent Market Insight Report 2014, there are nine million households with a net worth of $1 million (Not Including Primary Residence) in the United States, 1.24 million affluent investors with at least $5 million in net worth and 132,000 households with at least $25 million in net worth.
The report from China comes amid a drop in sales of high-end luxury items such as watches, wine and high-end automobiles. But Rupert Hoogewerf, chairman and chief researcher of the Hurun Report, said the totals from 2013 indicate there is still personal wealth growth taking place in the country.
"Although we have been seeing a slowdown in spending, the money is still very much there," Hoogewerf said in the published report.
According to the Hurun report, 55 percent of the millionaires are private business owners, and only 10 percent derive a majority of their income from stocks and financial investments.
The top Chinese cities for millionaires are Beijing (192,000), Guangdong (180,000) and Shanghai (159,000), which had the highest growth in total from 2012 to 2013 among the top three cities.
According to the China government, Gross Domestic Product grew 7.7 percent in 2013, and according to the China Index Research Institute the annual house price increased 11 percent, with a 24 percent jump in house prices in the nation’s largest cities.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.