Staff members counting RMB cash in China’s Nantong city. (Cfoto | Future Publishing | Getty Images)
The world’s super-rich club has expanded significantly over the past decade, with China leading the surge, according to a recent report by New World Wealth and Henley & Partners. Centimillionaires, or individuals with $100 million or more in investable wealth, have increased by 54% globally to 29,350, particularly in China and the U.S.
“China’s rise has been the most dramatic,” said Juerg Steffen, CEO of Henley & Partners, noting that the country’s centimillionaire population grew by 108% in the past 10 years, compared to an 81% increase in the U.S. This growth has been fueled largely by tech entrepreneurs and industrial magnates. Currently, there are 2,350 centimillionaires in China.
However, economic challenges such as a stalled property sector, high unemployment, and weak domestic consumption have slowed China’s ultra-wealthy growth since 2020, with only a 10% increase since then, said Andrew Amoils, a wealth analyst at New World Wealth. Future trends will depend heavily on the upcoming U.S. presidential elections, remarked David Young of The Conference Board.
Despite these hurdles, Henley & Partners sees potential in cities like Hangzhou and Shenzhen, projecting centimillionaire population growth of over 150% by 2040. Hangzhou’s GDP grew 6.9% year-on-year in the first half of 2024, while Shenzhen’s increased by 5.9% in the same period.
Globally, both the U.S. and China are expected to outpace the average centimillionaire growth rate of 75% by 2040. Asian and Middle Eastern cities like Taipei, Dubai, Abu Dhabi, and Bengaluru also show promise for significant growth.
In contrast, established hubs like Zurich, Chicago, Moscow, and Madrid are predicted to see more sluggish growth under 50% through 2040. Europe’s slower performance is attributed to key markets like Germany, France, and the U.K., though smaller markets such as Monaco and Malta have seen notable increases in their ultra-wealthy populations.
In the U.S., wealth hubs like New York, Los Angeles, and the San Francisco Bay Area are expected to grow by over 50%, but this growth could be influenced by the outcome of upcoming elections. An increasing number of wealthy Americans are also exploring alternative residence and citizenship options, according to Henley & Partners.
Original Story https://www.cnbc.com/2024/09/17/chinas-ultra-rich-population-growing-faster-than-the-us-report.html
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