According to a new study, China’s number of millionaires has eclipsed Japan’s thanks to huge returns from shadow-banking-related products that came in for the countries wealthiest citizens. No doubt officials are basking in the sweet satisfaction of one-upping their biggest rival.
The Boston Consulting Global Wealth 2014 report saw a massive increase in wealth from last year. The growth of millionaire households was up 82%, with the amount millionaires clocking in at 2,378,000, doubling Japan’s figures which totalled 1,240,000.
These new stats mean China has the worlds second-largest millionaire population, trailing only the US, which claimed a massive 7,135,000 millionaire households in 2013.
The Wall Street Journal explained the wealth was calculated by “reviewing national accounts and other public records, then distributed the wealth over a curve based on wealth-distribution statistics available in each country. It also researched national statistics to identify the types of assets owned by those in different countries.”
For the purpose of this study a millionaire household is defined by the total amount of liquid assets they had, including stocks, cash and other financial investments.
For most countries it was the booming stock market that saw a swell in their wealth but for China it was a whole different ball game. In this area wealth equities were reported to have dropped by 6.8% from the previous year. Their area was specialised finances, such as trusts, which saw finances balloon by 82%, “reflecting the country’s rapidly expanding shadow-banking sector”.
The Chinese real-estate bubble is a prosperous platform for the super-rich. The wealth of China grew by 49% last year, hitting a whopping $22 trillion, and assets will likely keep climbing as reported here.
By Sophie Regan