China has 130,000 more multimillionaires this year

PHOTO: AFP

The number of Chinese multimillionaires has increased by 130,000 over the past year, according to a new report.

The report called "Going Global: Trends of Chinese High Net Worth Individuals 2016" was jointly released by the Hurun Research Institute and China CITIC Bank Private Banking.

As of May 2016, there were 1.34 million multimillionaires in the Chinese mainland, 10.7 per cent or 130,000 more than last year, the report said.

These multimillionaires include entrepreneurs, gold-collar workers, real estate investors and professional stocks investors, accounting for 55, 20, 15 and 10 per cent respectively.

With the renmibi's inclusion in the SDR basket and the decline in domestic investment yield, a growing number of rich Chinese people have started considering global asset allocation.

The report showed 80.3 per cent invested in overseas financial portfolios with an aim of asset allocation and risk diversification, followed by protecting and increasing their assets (67.4 per cent) and preparing for their children to study abroad (37.1 per cent).

In terms of investment trends, Chinese multimillionaires preferred products with stable dividends. Among their overseas portfolios, foreign exchange deposits are the most common product, accounting for 62.9 per cent, followed by insurance (45 per cent) and stocks (41.4 per cent).

Compared with common people, there's strong demand from China's high net worth individuals to go abroad, including travelling, shopping, children's education, business, investment and medical cosmetology.

The multimillionaires who have invested in overseas property own 2.3 homes abroad on average. Among them, 74.9 per cent aim for investment, and 56.4 per cent for their children's education.

Guangdong province, with 240,000 people whose assets are worth more than 10 million yuan, became the place with the most multimillionaires this year, followed by Beijing, Shanghai and Zhejiang province.

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