THE NET INVESTABLE wealth of Hong Kong's millionaire class rose 17per cent last year to an average of HK$4 million, and the 274,000 people on the rich list are aiming to build retirement nest eggs of up to HK$10 million. At the other end of the scale, family budgets for Hong Kong's mainstream working class may stretch to little more than top-up payments to Mandatory Provident Fund (MPF) schemes, while the payouts for some people approaching retirement will not be enough to allow them to live without financial concerns. Between these extremes is a growing 'mass affluent' group, which invests in an array of licensed mutual funds or has taken to trading stocks online. Earlier this year, Citibank reported in its Hong Kong Consumer Wealth Review that the number of individuals who reported liquid assets worth more than HK$1 million was unchanged in 2005 at 274,000. That was equivalent to five out of every 100 Hong Kong adults aged between 21 and 79. The report also showed that almost two thirds of assets were spread between equities and deposits. On average, these millionaires each had around HK$4 million, which was up from HK$3.4 million in 2004, and they generally owned more than one property. In most of the savings portfolios in Hong Kong, property remains the core asset. This means that the surge in property prices has dramatically altered the investment landscape. Based on data from Midland Realty, the median house price has recovered from a low of HK$1,854 a sq ft in April 2003 to about HK$3,216 a sq ft today. Therefore, a 750 sq ft apartment bought for HK$1.39million just three years ago would now be worth HK$2.41million - a tidy capital gain for investors who got their timing right. But for members of the broader working class, family budgets remain under strain. In many cases, the costs of educating children and caring for elderly parents mean that there is not enough left in the kitty to invest adequately for anticipated retirement needs. In July, Gemini Personnel produced a guide on Hong Kong salaries based on an analysis of its own database of vacancies and discussions with clients. The study makes sobering reading for anyone used to hearing about multimillion-dollar salaries, bonuses paid to high-flyers or complaints from employers about soaring staff costs. Gemini found for example that the average salary for a secretary with three to five years' experience was just HK$8,000 to HK$10,000 a month. With eight or more years of experience and a move up to executive secretary, this may reach HK$20,000 to HK$30,000 a month. A senior receptionist might earn HK$9,000 to HK$16,000, while a driver with more than five years' experience would take home around HK$9,000 to HK$15,000 a month. A chief accountant in a back-office role might be earning from HK$25,000 to HK$35,000 and, only with promotion to the level of finance manager or financial controller, could they expect a monthly income of up to HK$50,000. Taking into account the typical family expenses, surveys show that even with a husband and wife both working, joint salaries do not go far in the average household once the mortgage has been paid. Bruno Lee, HSBC's head of wealth management for personal financial services Asia-Pacific, said many couples had little chance to set aside something extra for their own retirement needs. Most of those surveyed said they did not expect their children to support them, but more than a third admitted to giving little thought to retirement planning. 'It is critical for couples to start financial planning early so they can work towards achieving their aspirations,' Mr Lee said. This applies particularly to wage earners aged over 35, whose basic MPF contributions are unlikely to cover all their needs during a possibly lengthy retirement. But Mr Lee said savers were becoming a little more aggressive in their investment strategies. A September survey by HSBC of 1,400 retail investors found that their appetite for high-risk and moderate-risk investments had increased to 16 per cent and 67 per cent respectively, from 12 per cent and 62 per cent last year. The respondents investing for capital protection dropped from 26 per cent to 17 per cent. This was taken as a sign that Hong Kong investors were now riding the wave of improving market conditions and sentiment. The study also showed that people were trading more actively, with average turnover per investor increasing by 19 per cent to HK$547,000 this year from HK$459,000 last year. Turnover per transaction also grew by 19 per cent to HK$25,000 this year from HK$21,000 previously. These findings were supported by a Securities & Futures Commission survey published in June, which found that retail investors had accumulated sizeable share portfolios. Around one fifth of respondents reported holdings exceeding HK$500,000 and another 17 per cent reported portfolios valued in the range of HK$250,000 to HK$500,000. Options For many Hong Kong savers, MPF or unit trusts remain the preferred option, though the launch of the first Reits (real estate investment trusts) also caught the imagination of the average investor. To date, four Reits have been listed successfully on the Hong Kong stock exchange and, at the end of June 2006, their total market capitalisation amounted to about HK$49 billion. During 2005, the Securities and Futures Commission authorised 238 funds and three Reits and, at the end of last year, there were 1,964 authorised unit trusts and mutual funds in Hong Kong. At that point, they had a combined net asset value of HK$5.2 billion - up 21 per cent from 2004 Since the launch of the MPF in December 2000, the combined net asset value of funds in the scheme had risen to HK$170.49 billion as at June 30. The inflow of contributions in the second quarter was HK$6.9 billion, while a total of HK$1.2 billion was paid out in benefits