Rich Chinese and their wealth increasing at slower rate, with higher proportion under age 40

China’s high net worth individuals reach 3.16 million in 2022 and they hold a combined 101 trillion yuan in investable assets, survey finds

However, compound annual growth of assets falls to 9 per cent, compared to 17 per cent in previous two-year period

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The proportion of wealthy Chinese under 40 years old increased to 49 per cent last year from 42 per cent in 2021, according to a new survey. Photo: AFP

Published: 3:00pm, 2 Sep 2023Updated: 3:21pm, 2 Sep 2023

Affected by the economic downturn, the number of High Net Worth Individuals (HNWIs) in China and the value of their investable assets grew at a slower rate than in previous years, according to a new survey.

The number of HNWIs in China – those with individual investable assets in excess of 10 million yuan (US$1.38 million) – reached 3.16 million last year, an increase of about 540,000 compared with 2020, according to China Private Wealth Report, jointly published by Bain & Company and China Merchants Bank on Friday.

That amounts to a compound annual growth rate (CAGR) of 10 per cent in 2020-2022, down from 15 per cent in 2018-2020, said the report, which surveyed around 4,000 Chinese HNWIs.

Chinese HNWIs held a total of 101 trillion yuan in investable assets in 2022, with a CAGR of 9 per cent in 2018-2020, down from 17 per cent in 2018-2020. The group’s per capita holdings of investable assets stood at around 31.83 million yuan.

The report predicted that the number of wealthy Chinese and their investable assets would grow at a CAGR of around 11 and 12 per cent, respectively, over the next two years.

Wealth protection was the top financial goal for affluent Chinese, with 27 per cent of respondents saying it was their top objective, while 17 per cent cited “wealth creation” as their top goal, compared with 18 per cent in 2021.

Affluent Chinese took a more cautious investment approach compared with previous years. A total of 88 per cent of respondents said they had a moderate or low appetite for risk, with 52 per cent saying they sought a moderate rate of return and 36 per cent saying they would be fine with a rate of return that was higher than the domestic deposit rate.

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