Shenzhen is ranked fourth in a city-level list of the country’s number of high-net-worth families richer than 10 million yuan (US$1.57 million), and showed the highest growth rate, according to Hurun China Wealth Report 2021 released Saturday.
The report demonstrated that the total asset of Chinese high-net-worth families has reached 125.9 trillion yuan, 67 percent of which could be invested.
Beijing is home to the largest number of wealthy families, with 294,000; followed by Shanghai and Hong Kong, with 255,000 and 223,000, respectively. Shenzhen ranked fourth, with 76,000; a gain of 2.7 percent, which was the country’s highest. Hong Kong was at the bottom of the growth rate list, with an increase of 0.5 percent.
The report said that over the past year under the pandemic’s impact, the percentage of professional stock investors of Chinese high-net-worth families rose while the percentage of company executives fell. Among the 2.02 million high-net-worth families, some 20 percent were gold collars and approximately 10 percent were real estate speculators. Enterprise executives made up 60 percent and 10 percent were professional stock investors, up 5 percent as the A-share market gained over the past two years.
The 10 richest people who reside in Shenzhen were: Ma Huateng from Tencent with 317 billion yuan in total assets, Wang Chuanfu from BYD with 142 billion yuan, Zhang Zhidong from Tencent with 127 billion yuan, Xu Hang from Mindray with 118 billion yuan, the Wang Wenyin family from Amer International Group with 116 billion yuan, Li Xiting from Mindray with 115 billion yuan, Lin Li from Shenzhen Liye Group with 81 billion yuan, Li Hua from Excellence Group with 70.5 billion yuan, Chen Zhiping from Smoore International Co. with 60.5 billion yuan and the Zhu Baoguo family from Joincare Pharmaceutical Group with 60 billion yuan.
The report indicated that individuals with high net worth have valued security more than value growth while investing for two consecutive years. The stock market, insurances and bank financial products were their top three choices in investing.
The combined average annualized return rate of Chinese high-net-worth families’ investments in stocks, funds, bonds, investment properties, insurance, equity and alternative investments was around 12.9 percent in the past three years and their expectation for the next three years is over 20 percent.
The return of investment rates presented a close relationship with individuals’ occupations, where corporate owners and professional stock investors gained higher than gold collars, with figures at 13.5 percent, 14.4 percent and 10.3 percent, respectively.
Another factor is net assets. Compared with those with net assets less than 30 million yuan, families with net assets over 30 million yuan garnered a larger income rate, which was 14.9 percent on average.