China’s Ranks of Super-Wealthy DeclinePosted: September 12, 2013
Over the past year in China, the ultra-rich didn’t get richer–they got poorer and shrank in number, even as the ranks of the ultra-rich and their assets swelled in other parts of the world.
The number of China’s ultra-rich–those with a net worth of $30 million or more–slipped from 11,245 to 10,675 as the country’s economic growth slowed to its lowest pace in more than a decade, according to a new report from private-wealth consulting firm Wealth-X and UBS AG. Their total wealth also declined, falling to $1.52 trillion this year from $1.58 trillion last year.
So where did the money go? At least some of it went to Hong Kong, where ultra-rich people now have some US$530 billion worth of assets, a US$60 billion increase from the previous year. “China has experienced slower GDP growth, a credit crunch and a government clampdown on luxury spending to combat corruption in the country. Faced with these economic pressures in their home country, many wealthy Chinese from mainland China are diversifying and moving their assets to Hong Kong,” the report said.
Hong Kong is now home to 3,180 ultra-rich individuals, an increase of 12.8% from the previous year, and continues to rank fourth in Asia, behind Japan, China and India.
Despite the decline in China, the number of ultra-rich in Asia grew by 3.8% over the past year after shrinking the previous year. Pakistan saw the biggest increase by percentage–33.9% to 415.
Read more about China’s decline in its number of ultra-rich individuals at MoneyBeat.