Yesterday Forbes released the China Affluent Class White Paper” which remarks the first time the Forbes starts its research on Chinese affluent class. The “paper” shows that 53.9% of the affluent class are involved in the real estate investment. The white paper said the Chinese people believe that real estate is the lowest risk investment product which explains why China’s housing prices remains high.
The so-called affluent class include the middle class groups who have US $100,000 to US $ 1 million investable assets. A large part of this social group is colloquially referred to as “high-level white-collar”. The personal investment assets are personal holdings of liquid assets, such as cash, deposits, stocks, funds, bonds, insurance and other financial products and personal-held investment and real estate.
The white paper also said that China’s affluent class has expanded in a rapid speed in the last two years. The group in 2010 was 7.94 million, the digit grew to 10.26 million in 2012. In accordance with the growth of personal assets in recent years, this group at the end of 2013 will reach 12.02 million. At the same time, the amount of private wealth owned by this group has also increased rapidly in term of per capita investment which is valued around 1.33 million yuan (US $212,800).
Among the respondents, 96.7% own houses of which 39.9% had three houses or more which is believed to have closed relationship with real estate policy and housing prices trend in the past 15 years. Even today real estate is the no.1 choice of investment among the affluent class in China.