China produces fewer millionaires as economy slows

Screen shot 2013-08-16 at 9.40.44 AMChina’s millionaires, a symbol of the country’s growing wealth, increased at their slowest rate in five years in 2012 as the economy and stock market stumbled, a survey showed.

The number of millionaires — defined as those with personal wealth of at least 10 million yuan ($1.6 million) — rose just three per cent year-on-year to 1.05 million, said the independent Hurun Research Institute and consultancy GroupM Knowledge.

The number of “super-rich” Chinese — with personal wealth of at least 100 million yuan — went up only two per cent to 64,500, also the slowest pace in five years, according to the survey released on Wednesday.

The slowdown came as growth in the world’s second largest economy slipped to a 13-year low of 7.8 per cent in 2012.

Only a quarter of Chinese millionaires were “very confident” about the domestic economy in the coming two years, the survey showed, down from 28 per cent in 2011 and nearly half of those questioned in 2010.

China’s economic growth slipped further to 7.7 per cent in the January-March period this year and slowed to 7.5 per cent in the second quarter, raising alarm bells over possible deeper weakness.

Beijing, the nation’s capital and political centre, had the highest number of millionaires with 184,000, or 17.5 per cent of total, the survey said, ahead of the financial hub Shanghai on 147,000.

Stock market sluggishness also contributed to the slower growth of the wealthy population, with the Shanghai exchange’s benchmark index gaining only 3.17 per cent last year.

About 15 per cent — 160,000 — of Chinese millionaires named stock investments as their main source of wealth, down five per cent from 2011, according to the survey.

Real estate remained Chinese millionaires’ top investment choice despite government regulations aimed at cooling the market, the survey said, but they had a growing tendency to seek such investments overseas.

 

 

 

Source : Channel News Asia | August 15, 2013

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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