Macro-Economy
Affluent Chinese to reach 14 million: Forbes China
Last Updated: 2014-04-16 23:08 | Global Times
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Forbes China said on Wednesday that by the end of 2014 ?China will have 14.01 million individuals identified as members of the mass affluent ?stratum, with investable assets worth from 600,000 to 6 million yuan ($100,000 to 1 million).

This group is expected to reach 14.01 million by the end of 2014, up 17.04 percent from 11.97 million at the end of 2013, according to the Forbes China Mass Affluent Report published in Beijing.

According to inter?national references, Chinese who ?qualify for the mass affluent stratum should possess investable assets worth from 600,000 to 6 million yuan at their disposal. These assets include cash, deposits, stocks, funds, bonds and property for investment.

People from this stratum possessed 16.6 percent of ?China's total private investable assets of 94.1 trillion yuan, while the average worth of investable assets for members of this stratum was 1.31 million yuan by the end of 2013.

Su Hainan, vice president of China Association for Labor Studies, said the Forbes measurement basically reflected the actual picture of the Chinese ?affluent mass.

"Their growing number ?represents a swelling force for society. The outstanding members, who make their own fortune through legal means and hard work, will set up great examples for young Chinese who aspire for a better life," he told the Global Times Wednesday.

"Although this stratum only accounts for less than 1 percent of the total population, they would prove to be a powerful force in boosting economic growth if the government creates more investment channels for them," Li Chang'an, a professor with University of International Business and Economics in Beijing, told the Global Times Wednesday.

Most of the members in this stratum come from the finance, trade and manufacturing sectors, and over 60 percent of them belong to the age group of 30 to 50 and 53.8 percent have a bachelor's degree.

The top three most ?favored investment tools for the affluent Chinese are wealth ?management products sold by banks, property and stocks, the report said.

This investment portfolio has remained unchanged from findings in 2013.

However, 80.7 percent of this wealthy group of Chinese chose financial products by banks as their primary investment tool while only 62.5 percent did so in 2012, indicating their fondness for financial products with fixed returns.

Although stock investment remained their third most favored financial tools, less people engaged in investing in the stock market, the report said.

"This preference for fixed return is aligned with their status, they no longer chase expanding their fortune by investing in high risk, high return products," Li Daxiao, a senior researcher with Shenzhen-based Yingda Securities Co, told Global Times Wednesday.

A drop in shares they held was due to the poor performance of the stock markets in the past year, Li noted.

Factors on the wealthy citizens' happiness spectrum by importance are health, wealth, career, quality of life, social circle and personal hobbies, the Forbes report said.

The report also found that Australia and New Zealand have supplanted North ?America as the top emigration destination, after the US and Canada raised their threshold.

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