Internet boom boosts ranks of China's super rich
The number of mainland millionaires is set to almost double in the next five years, outpacing other major emerging and developed economies, despite recent concerns over the country's slowing economic growth.
The number of mainland millionaires is set to almost double in the next five years, outpacing other major emerging and developed economies, despite recent concerns over the country's slowing economic growth, a survey found.
The number of mainland US dollar millionaires was expected to nearly double to 2.3 million by 2019, faster than the growth in America and India, Credit Suisse said in a report published yesterday. The number of American millionaires, the single largest group and one expected to account for 37 per cent of global wealth by 2019, is tipped to grow 39 per cent to almost 20 million, while that of Indian millionaires is forecast to surge 61 per cent to 294,000.
Growth of 62 per cent is expected in Hong Kong and 50 per cent in Singapore.
"We see exciting development potential for novel consumer goods, lifestyle products and innovative financial services in this high-growth Asia region," said Fan Cheuk-wan, chief investment officer at Credit Suisse's private banking unit.
In a separate note, Swiss private bank Julius Baer said productivity improvements in human capital led to real wage growth and reform efforts would also boost ordinary people's incomes.
Credit Suisse estimated household wealth on the mainland would increase 11 per cent a year for the next five years to US$36.2 trillion in 2019, making it the world's second-wealthiest economy after the US from 2016. It said mainlanders would represent 9.8 per cent of global wealth in five years, up from 8.1 per cent this year.
Despite an upbeat prediction, the mainland's third-quarter gross domestic product growth, due to be announced next week, is expected to slow further as a property downturn weighs on investment and spending.
