There have been a lot of wealthy people in China for quite a long time now – though simplistic reading of per capita statistics continue to convince some that Chinese people are poor. Many still are (though even they are better off than they used to be). But others are getting rich just as fast as many in the West are losing their shirts, as Times of India notes:
“The ranks of the world’s millionaires grew 6% last year, as people in the emerging economies of India and China grew richer, according to an annual survey by Capgemini SA and Merrill Lynch. The number of people with over $1 million to invest, not including the value of their homes or consumable goods, rose 6% to 10.1 million last year, the firms said in their World Wealth Report, published on Tuesday.
The world’s millionaires increased the value of their assets by 9.4% to $40.7 trillion, less than the 11.4% rise in 2006,India and China posted the biggest gains in millionaires, advancing by 23% and 20%, respectively.”
But what will these new rich do with their funds, now that the markets are looking less attractive? EU Bankers reports on some research out of China:
“A research report released Tuesday by China’s top bank Industrial and Commercial Bank of China (ICBC) shows that Chinese people are reluctant to invest their money in stocks and funds, while their willingness to invest in gold has risen and their interest in bonds and wealth management products has tended to stabilize.
According to the report, 17 per cent of the respondents are willing to invest in stocks, down from 32 per cent in the bank’s previous survey last year, and 12 per cent are willing to buy securities investment fund units, down from 26 per cent.
…The bank’s ICBC Investment & Wealth Management Index to reflect Chinese urban residents’ will of investment and wealth management, the first phase for 2008, released Tuesday, was 108, down from 115 for the second phase in 2007 and 126 for the first phase in 2007.”
The new rich make for an interesting niche .
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