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.