China Surpasses U.S. in Ultra-Rich Population Growth
The world’s super rich club has seen significant expansion over the past decade, with China taking the lead in this remarkable growth. According to the latest report from New World Wealth and investment migration advisor Henley & Partners, the number of centimillionaires worldwide has surged by 54% to 29,350 over the last ten years, with China and the U.S. leading the charge.
Centimillionaires are individuals with investable wealth of $100 million or more. “America and China have experienced what can only be described as a centi-millionaire boom, significantly outperforming their European counterparts,” stated Juerg Steffen, the CEO of Henley & Partners. China’s centimillionaire population has seen the most dramatic rise, expanding by 108% over the past decade, surpassing even the impressive growth seen in the U.S., where the number of super-wealthy individuals increased by 81% during the same period.
China’s growth in centimillionaires has been largely driven by the emergence of tech billionaires and industrial magnates, highlighting the country’s rapid economic development. Currently, there are 2,350 centimillionaires residing in China, a testament to the country’s growing wealth and influence on the global stage.
However, China’s economic growth has faced challenges in recent years, including issues in the property sector, rising unemployment rates, and subdued domestic consumption. Most of China’s centimillionaire boom occurred between 2013 and 2020, with the number of ultra-rich individuals only increasing by about 10% since 2020.
Future Trends and Growth Prospects
Despite these challenges, the report suggests that cities like Hangzhou and Shenzhen still hold promise as emerging tech hubs and are expected to experience exceptional growth in their centimillionaire populations by 2040. Economic expansion in these cities has outpaced the national growth rate, with Hangzhou’s GDP growing by 6.9% year-on-year in the first half of 2024 and Shenzhen seeing a 5.9% year-on-year increase during the same period, fueled by its industrial sector.
Looking ahead to 2040, it is anticipated that China will continue to see robust growth in its centimillionaire population, with projections ranging from 80% to 100%. Both the U.S. and China are expected to outperform the global average centimillionaire growth rate of around 75% by 2040.
The report also highlights the growth potential in other Asian and Middle Eastern cities, including Taipei, Dubai, Abu Dhabi, and India’s Bengaluru, which are poised to see a 150% increase in their ultra-rich populations. On the other hand, established hubs like Zurich, Chicago, Moscow, and Madrid are expected to experience slower growth in their super-wealthy populations, with growth rates of less than 50% predicted through 2040.
European Wealth Trends
Europe’s performance in terms of centimillionaire growth has been sluggish, attributed to the slow expansion of key markets such as Germany, France, and the U.K. However, smaller European countries like Monaco, Malta, Montenegro, and Poland have seen significant growth in their centimillionaire populations, with increases of 75% or more.
The U.S. continues to be a major wealth hub, with cities like New York, Los Angeles, and the San Francisco Bay Area expected to see further growth of over 50% in their ultra-wealthy populations. However, the future dominance of the U.S. in the global wealth landscape could be influenced by the outcome of the upcoming presidential elections.
David Young, president of the Committee for Economic Development at think tank The Conference Board, emphasized the impact of the elections on centimillionaire growth and migration trends, citing potential differences in fiscal, monetary, economic, and social policies. There has been a notable increase in affluent Americans exploring alternative residence and citizenship options, as indicated by research conducted by Henley and Partners.
In conclusion, the global landscape of wealth distribution is evolving rapidly, with China emerging as a key player in the centimillionaire segment. While challenges persist, particularly in the current economic climate, the future outlook remains promising for the ultra-rich population in various regions across the world.