China's 'Super Rich' Citizens Increase to Record High
The number of 'super rich' Chinese citizens has increased to a record high in the past year. According to a recent report, many of these people got their wealth from the so-called "innovative industries."
Based on the latest China Private Wealth Report, which defines a super wealthy individual as a person who has investable resources of over ¥10 million or the equivalent of $1.6 Million, there were more than one million ultra rich people in China at the end of 2014, Shanghai Daily reported.
From 2012 to 2014, investable resources from Chinese citizens have grown at an annual rate of 16 percent. The new super rich Chinese individuals reportedly made their money from alternative energy, biotechnology, information technology, and other innovative industries.
Around eight out of 10 of these high earning individuals are under the age of 50.
Officially, super rich Chinese citizens are called high net worth individuals or HNWI. Alfred Shang, one of the authors of the report, said that the HNWI are the real drivers of Chinese economy and give crucial support in the innovative industries.
Shang added that the new super rich Chinese are very aggressive in their investments and open minded in alternate investments, Asia One reported. He said their objective is to preserve and create wealth.
Geographically, the province of Guangdong has over 100,000 ultra rich Chinese. Major cities such as Beijing and Shanghai as well as other provinces such as Jiangsu also have over 50,000 very wealthy individuals.
A recent report made by UBS and PricewaterhouseCoopers projected that Asia will replace the West as the center of wealth creation within ten years, according to Forbes. The report also added that a super rich Chinese emerged every week in China during the first quarter of 2015.
Chinese billionaires have made their money based on their country's economic rise brought on by globalization and rapid urbanization.
Source Credit: chinatopix