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China sterling millionaires hit record 1.09million
Brief:The number of sterling millionaires in China has hit a new record of 1.09million, new data reveals, including many who have made their money through real estate.At the end of 2013, the number of millionaires – those with personal wealth of CNY10million, (US$1.6million/£1million) in China reached 1,090,000, up 3.8% or 40,000 from the previous year, according to the 2014 Hurun Wealth Report.
The total of  China’s millionaires has risen by 3.8% year-on-year, faster than in 2012, says the Hurun Wealth Report, to reach a new record – and super-rich numbers are rising at a similar rate

The number of sterling millionaires in China has hit a new record of 1.09million, new data reveals, including many who have made their money through real estate.

At the end of 2013, the number of millionaires – those with personal wealth of CNY10million, (US$1.6million/£1million) in China reached 1,090,000, up 3.8% or 40,000 from the previous year, according to the 2014 Hurun Wealth Report.

The total of super-rich, with a personal wealth of CNY100million, (US$16million/£10million), reached 67,000, up 3.7% year-on-year.

Rupert Hoogewerf, Chairman and Chief Researcher of the report, says, “Although we have been seeing a slowdown in spending, the money is still very much there.”

In the next three years the number of millionaires could reach 1,210,000, and the super-rich to 73,000, according to The Hurun Research Institute, which publishes the Wealth Report.

Beijing had the highest number of high net-worth individuals (HNWIs) at 192,000, followed by Guangdong at 180,000 and Shanghai at 159,000 in third place. Tianjin had the fastest growth rate of millionaires and super-rich.

Last year, house prices in China rose 11.5%, with prime city property prices rising 24% and second and third tier cities real estate prices increasing 6.9%. In 2013, the Chinese economy grew, with Gross Domestic Product rising 7.7% but, the Shanghai Stock Index fell by 11%.

In the last Hurun Rich List the rate of growth of millionaires and super-rich in China, totaled 1.05 million, but grew at the lowest rate for five years.

This year, Beijing has increased its millionaire total by 8,000 and its super-rich numbers by 600 to 11,300, the highest in the country. Guangdong has 10,000 super-rich and Shanghai 9,100.

Apart from Hebei, Inner Mongolia, Heilongjiang, Liaoning and Shanxi, in all the other 31 Chinese provinces, municipalities, and autonomous regions, excluding Hong Kong, Macao, and Taiwan, the number of millionaires has increased.

The Top 10 places to live for China’s millionaires:
1.    Beijing 192,000 millionaires, 17.6% of the total
2.    Guangdong, 180,000, 16.5% of the total
3.    Shanghai, 159,000, 14.6% of the total
4.    Zhejiang, 133,000, 12.2% of the total
5.    Jiangsu, 79,000, 7.3% of the total
6.    Fujian, 40,000, 3.7% of the total
7.    Shandong, 40,000, 3.7% of the total
8.    Liaoning, 29,700, 2.7% of the total
9.    Sichuan, 27,800, 2.6% of the total
10.    Tianjin, 20,600, 1.9% of the total

Hurun has divided Chinese millionaires into four categories: private business owners, professional stock market investors, real estate and high-salaried executives.

Private business owners – 55% of the millionaires (600,000 people) have their own business – a 5% increase since the previous year. Their business account for 60% of their total assets. On average they have their own personal residential property worth over 2millionRMB.

High-salaried executives – High-salaried executives include senior executives at major enterprise groups and multinational companies, which account for 20% of the millionaires, have average personal residential property worth at least 5.5millionRMB.

Real estate investors – 15% of millionaires, or around 160,000 people, invest mainly in real estate and own multiple properties, with no change from last year. Invested properties account for 90% of their total assets, owning personal residential property, cash and marketable securities which increased by about 5% over the past year.

Professional stock market investors – 10% of the total, have average personal residential property worth 4.5 million RMB, and they also own investment property worth 2millionRMB.

Chinese super-rich are split into private business owners, real estate investors and professional stock market investors.

Private business owners – Private business owners make up 80% of the super-rich. Their business accounts for 60% of their total assets, and cash and stocks for 15%. They own personal residential property and investment property worth around 12millionRMB and 8millionRMB.

Real estate investors – Real estate investors account for 15% of the super-rich – around 10,000 people. Real estate investment accounts for 60% if their total assets. They have around 15millionRMB worth of cash and stock and own 22millionRMB worth of personal residential property,

Professional stock market investors – Professional stock market investors account for 5% of the super-rich and have personal residential property worth 25millionRMB.

The Hurun Wealth Report takes into account both fixed assets and current assets of those included.

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