Wealth in China: the number of rich and ultra rich people decrease, but the social structure also changes

As per the Hurun Wealth Report 2023, which was released by the Hurun Research Institute on Tuesday, March 19, the total wealth of Chinese households fell 3.6 percent from the previous year, and the number of households with assets of 6 million yuan ($1.13 million) decreased for the second time in 15 years.

According to the Hurun Wealth Report 2023 released by the Hurun Research Institute on Tuesday (March 19), the number of “affluent households” in China with assets of 6 million yuan stood at 5.14 million as of Jan. 1, 2023, down 0.8 percent from the previous year. The number of “high net worth households” with assets of 10 million yuan will be 2.08 million, down 1.3 percent from the previous year. The number of ultra-high net-worth households with assets of 100 million yuan decreased by 3.8 percent to 133,000 households.

The COVID-19 pandemic’s effects in 2022 coincided with shifting international geopolitical conditions, increased uncertainty surrounding global economic development, and varying degrees of impact on the private wealth of the world’s leading nations, according to Hurun Billionaires researchers’ analysis.

In terms of cities, the distribution of 6 million yuan households in China still maintains the pattern of “3+2+2” city clusters; the top three are Beijing, Shanghai, and Hong Kong, followed by Shenzhen and Guangzhou, and then Hangzhou and Ningbo. The 30 most concentrated cities account for 67 percent of the total number of affluent households in China.

From an urban perspective, the distribution of households with assets of 6 million yuan in China still maintains a “3+2+2” urban agglomeration pattern: the top three are Beijing, Shanghai, and Hong Kong, followed by Shenzhen and Guangzhou, and then Hangzhou and Ningbo. The top 30 cities with the highest concentration account for 67 percent of the total number of affluent households in the country.

In addition, the number of “wealthy households” with an investable wealth of 6 million yuan reached 1.5 million, the number of “high net worth households” with an investable wealth of 10 million yuan reached 897,000, and the number of “ultra-high net worth households” with an investable wealth of 100 million yuan reached 1.5 million. The number of “net-worth households” reached 67,000.

Two issues that the future of Chinese wealth will face

How will the Chinese invest wealth in the near future? Hurun said, “Investable assets represent the strength of investments. The first choice for investment among high-net-worth individuals in China in the coming year will be gold. Foreign assets account for one-sixth of investable assets. Hong Kong and Singapore are hot spots for overseas investment .” So the wealth of the Chinese will shift from real estate to gold.

Another momentous change will mark Chinese society: according to the report, wealth inheritance has become a mainstream topic today. Within 10 years, China will have wealth of 21 trillion yuan, 3 trillion U.S. dollars, passed on to the next generation by heredity. Within 20 years, this wealth will reach 49 trillion yuan (7150 billion U.S. dollars) and constitute the mass transmitted by inheritance. This constitutes an example of change for Chinese society, which, by now, has nothing communist about it and will become increasingly capitalist and wealthy by mere inheritance