China’s super rich are not only getting richer, they’re taking serious care to ensure that they hang on to their cash and make sure it stays in the family.
According to a survey by the Hurun Research Institute and China Minsheng Bank, up to 70 percent of those with more than 500 million yuan ($80.6 million) in wealth, of which there are 17,000 such individuals, have concerns over inheritance.
Some 30 percent of them, who together hold a combined wealth of 31 trillion yuan, are reported to have taken out insurance policies specifically for the purpose of wealth inheritance, making sure that their descendants end up rolling in their money after they’re gone.
Shanghai Daily reports that the majority of China’s nouveau riche, known as baofahu in Chinese, have predictably earned their money through business in Shanghai, Beijing, Guangzhou and Shenzhen.
Their interest in investment, most of which is done in the name of their companies, is however aimed at asset appreciation rather than wealth preservation, the report said. Around 80 percent are already investing overseas or thinking about doing so.
At Shanghaiist we can only hope that the rich do indeed continue to hand vast sums of money over to their immature children hand over fist so that we may continue to report on the abuse of luxury cars, desperate newspaper apology adverts and outrageously extravagant wedding ceremonies.
By Dominic Jackson