The number of ultra-wealthy, defined as individuals with a net worth of more than US$30 million, in China fell for the second straight year in 2023 as a sluggish economy and a deepening real-estate downturn took their toll, with Hong Kong following a similar trend, according to a report by a New York-headquartered consultancy.
China now has 46,060 ultra wealthy individuals whose total wealth amounted to US$5.20 trillion, down from 2022’s tally of 47,190, with a cumulative wealth of US$5.3 trillion.
Hong Kong, with 12,546 ultra high net worth (UNHW) individuals, also recorded a slight dip in its population of wealthy citizens. Its population of wealthy people declined by 0.4 per cent to 12,545, with a total wealth of US$1.48 trillion, Altrata said.
The consultancy said Hong Kong showed a marked contrast to the gains in all the other leading ultra wealth cities, but said that it will remain a regional powerhouse owing to its unrivalled status as a nexus for financial flows between China and the global economy.
“The growth potential of the semi-autonomous territory has been weakened,” Altrata said. “The political clampdown in recent years and the heightened control by the mainland Chinese government has tempered investor sentiment and talent inflows among the super-rich, with wealth portfolios constrained by relatively weak returns from China-related assets.”
The report’s latest finding was largely similar to a January report by Hurun that stated that the US added 109 billionaires among its population, bringing its elite set to total to 800, while in China, there were 155 fewer billionaires, but remained the country with the highest number of such individuals with 814.
The Altrata report showed the super-rich in the US, whose numbers grew to 147,950 from 121,465 in 2022, had amassed a wealth pool of US$17.15 trillion in 2023, a rise of 28 per cent over the previous year.
“The top-ranked wealth centre of New York registered a 14 per cent rise in UHNW numbers, with asset portfolios in the world’s largest financial hub bolstered by the strong rebound in US and global equities, robust consumer spending and the overall resilience of the US economy,” the report said.
That wealth pile was driven by “tech-led capital market gains and a stand-out economic performance among its developed-market peers, overshadowing slight currency weakness and heightened political instability,” Altrata said.
Three of the world’s most valuable companies are all US-based tech firms, led by Microsoft, followed by Nvidia and then Apple – whose respective market capitalisations had already breached the US$3 trillion mark. Two more US-based firms rounded out the world’s five most valuable companies – Google and Amazon.
The study also noted that with Asia’s significant wealth expansion from 2000 to 2020, the region’s share of the global UHNW class is forecast to rise to 27 per cent in 2028, a 1 per cent increment from its 2023 share. The region will be home to the second-largest wealthy cohort following North America’s 39 per cent share. Europe will be relegated to third place, accounting for 24.8 per cent.
However, the report said Asia’s wealth creation catch-up process has “largely played out”.
“Asian growth is settling at a level below its pre-pandemic trend, although the broad outlook for wealth creation remains positive,” it said.
Overall, the world’s wealthy set increased by 7.6 per cent to a record 426,330 individuals in 2023. This exclusive group’s population is now more than 20 per cent larger than it was five years ago and their total net worth jumped 7.1 per cent to US$49.2 trillion.
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