HurunReport: 2.8m Dollar Millionaires in China, 17% from Beijing

By | April 18, 2013

The Industrial Bank and Hurun Report on 15 April jointly released the China Passion Investments White Paper 2013. The 80-page report sets out the size of the market of Chinese luxury consumers, together with an analysis of their passion investment preferences and trends, based on the results of a survey of 1219 dollar millionaires from around the country.

Geographical Distribution of dollar millionaires in China

17% of Chinese dollar millionaires are based in Beijing, followed by 16.8% based in Guangdong.

Tianjin’s dollar millionaire population grew by the greatest margin, up 10.5% on last year. Inner Mongolia is the only place that now has less dollar millionaires than before, down 3% in 2012 compared to 2011.

The number and distribution of dollar millionaires in China

Dollar Millionaires Geographical figure1

RankRegionDollar MillionairesNational ShareYear on year Increase
1Beijing475,00017%3.3%
2Guangdong469,00016.8%3.1%
3Shanghai390,00013.9%5.4%
4Zhejiang375,00013.4%1.4%
5Jiangsu208,0007.4%5.1%
6Fujian107,0003.8%1.9%
7Shandong105,0003.8%7.1%
8Liaoning80,0002.9%1.9%
9Sichuan68,5002.4%5.4%
10Tianjin47,5001.7%10.5%

Source: China Passion Investments White Paper 2013, by Industrial Bank and Hurun Report

Report sound bites

The implementation of housing market cooling policies has had a definite impact on the creation of dollar millionaires in China last year.

Real estate prices are up 4.1% yoy across the country, whilst first and second tier cities has seen growth of 4.6%, according to a report by the Shanghai E-House Institute based on real estate prices from over 70 cities as of December 2012.

Real estate is the preferred investment vehicle of choice with 76% of respondents, followed by stocks with 65%. Passion investments, as an alternative investment choice, is in third place with 56%, showing a significant increase on last year.

For passion investments, art is most popular, followed by jewelry, jade, fine wine and watches. Within the category of art, classical Chinese paintings is most popular, followed by porcelain and oil painting.

The risks of passion investments, including weak liquidity, high transaction costs, lack of market standardization and regulatory bodies and higher knowledge requirements continue to put off some would-be investors looking to diversify their assets.

About Hurun (Rupert Hoogewerf)

Hoogewerf Rupert Hoogewerf, born in 1970 in Luxembourg, graduated from the Durham University in 1993, he also studied in Renmin University of China to learn Chinese, studied in Japan to study Japanese, he is also proficient in German, French, Luxembourg, Portuguesese​​. He had 7-year work experience in Arthur Andersen in London and Shanghai, Certified Public Accountant in UK. In 1999 he established the first “Rich List” in China, known as the “godfather” figure of China’s private economy.

Reference Link: http://www.hurun.net/usen/NewsShow.aspx?nid=432

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