Chinese Millionaires Will Treble Soon
According to a survey released on Tuesday by Credit Suisse, despite Beijing’s national push to reduce wealth disparity and a drastically slowing economy, the number of millionaires in China is predicted to quadruple by 2026.
China’s total household wealth increased by 15.1% or $.2 trillion from 2020 to $85.1 trillion in 2021. The official language around Beijing’s goal for “shared prosperity” has drastically increased recently, and a crackdown on abuses in sectors like technology and private education has alarmed investors. China had 6.2 million millionaires in 2021, an increase of almost a million from 2020, whereas there were 5.2 million more millionaires worldwide. In China, that number is anticipated to treble to 12.2 million within five years, according to the survey.
Will the Chinese Economy Regain Power?
The world’s second-largest economy just escaped collapsing in the second quarter because of widespread COVID-19 lockdowns and the slumping real estate market, despite the bright prognosis for China’s wealth growth. The fastest yearly rate of global family wealth growth, excluding exchange rate effects, was 12.7% in 2021, although expectations were eclipsed by increased geopolitical and financial risks. By the end of 2021, global household wealth had increased to $463.6 trillion, largely due to a sharp increase in financial assets, which made inequality worse in that year.
According to the research, household wealth increased the most in the United States, China, and Canada, each of which experienced increases of $19.5 trillion, $11.2 trillion, and $1.8 trillion, respectively.
According to Axel Lehmann, the chairman of Credit Suisse’s board, it’s probably too early to completely analyze the impact of the inflation, Ukraine crisis, and supply chain issue, but certainly, we will see some reversals of the global wealth increases in 2022. The Swiss private bank is nonetheless optimistic about the five-year growth projection, estimating that by 2026, family wealth would have increased by $169 trillion globally.
