Moneyed passion for art grows as property cools

Mainland millionaires are increasingly seeking out art, fine wine and watches for investment as the property sector shows signs of cooling and stock prices refuse to pick up.

About 56 per cent of mainland millionaires in US dollar terms parked part of their wealth in so-called passion investments, according to a report published by the Hurun Research Institute and Industrial Bank.

"The understanding of fortune has changed dramatically in the past decade," said Rupert Hoogewerf, the chairman and chief researcher of the institute. "The rich Chinese are now taking a global view in dealing with their fortunes and assets."

The report defines passion investments as art, fine wine, jewellery, jade and watches.

It said the number of millionaires on the mainland increased 4 per cent last year to 2.8 million, growing at the slowest pace in four years due to the economic slowdown and increasing concentration of wealth.

Based on a survey of 1,219 mainland millionaires, the report said 76 per cent invested in properties while 65 per cent owned stocks. Both the percentages of property and stock investments hit the lowest in four years.

Millionaires, mostly private entrepreneurs or high salary earners, have in the past invested heavily in property and stocks to combat inflation and beat the paltry interest rates offered by mainland banks.