Look China rich help drive billionaire wealth to $8.9 trillion

29 October, 2018, 05:42 | Author: Darnell Patrick
  • Founder of Microsoft Bill Gates

Rapid urbanisation and productivity growth would help the young entrepreneurs at the forefront of China's wealth creation continue to reach the ranks of the billionaires in the coming years, it said. China will demand more from its own very wealthy, and the bargain gained by American billionaires-low taxes, light regulation, and little fear of that changing-is unlikely to be on offer from Beijing.

China is leading the world in billionaire-generation with two billionaires created every week, which accounts for 22% of the increase, or $315.8 billion, in billionaire wealth worldwide. Fortunes, many tied to public markets, have been buffeted by more volatile equity markets. As at Thursday, the S&P 500 was still clinging to a year-to-date return of 1.2 per cent, but China stocks were down by 21 per cent based on the Shanghai Shenzhen CSI 300 index.

He added: "The first step for wealth creation is usually the equity market; Asia and the U.S. share the same characteristics".

Thanks to a strong currency development, Western Europe had strong wealth growth over the past year. The U.S. added 53 billionaires a year ago, a 4% increase, bringing the total to 585.


At the current rate, UBS and PwC expect Asia-Pacific billionaires to be wealthier than their U.S. peers in under three years.

The Americas region was still home to the highest concentration of billionaire wealth in 2017, although wealth creation in the region was reported to be slowing. And a total 97 per cent of all China's billionaires were self-made. 585 of these billionaires are in the United States, which houses the most of any one country in the world. Their assets increased by 39 percent to $1.12 trillion. The top three industries driving the wealth were real estate, financial services and industrials. The US created 53 billionaires in 2017, compared with 87 in 2012.

Ng Siew Quan, PwC Singapore Asia-Pacific entrepreneurial and private business leader, noted the rising entrepreneurial spirit among those who inherit a family business, compared to those who simply inherit wealth. Almost two thirds (62 percent) of billionaires' sons and daughters who inherited the family business in 2017 sought to become entrepreneurs, compared with 42 percent who inherited assets. "Over the past five years (2012-2017), the sum passed by deceased billionaires to beneficiaries has grown by an average of 17 percent each year", the UBS report concludes.

Asian billionaires on the whole and those based in Shenzhen in particular are a major challenge to the traditional US dominance in tech matters. On present trends, they would be wealthier than their United States counterparts within three years.

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