China’s population of ultra-high net worth has increased at a faster pace over the past ten years compared to the other nations in the world. The centimillionaires, defined below, refers to people who have wealth, investable amount exceeding $100 million. According to the definition used in this study, the number of centimillionaire populations increased from 26,032 to 29,350, realizing an increase of 54% in their total numbers across the globe. However, within China, the centimillionaire population grew at 108%, far more than the 81% growth realized in the U.S.
According to Henley & Partners Group CEO Juerg Steffen, there is really a wide gap in performance between China and Europe. “While America and China have observed what can only be described as a centimillionaire boom, largely ahead of their European counterparts,” said Steffen. “China’s fast growth is dramatically due to the rapid strength of family wealth of tech entrepreneurs and industrial leaders as shown by 2,350 centimillionaires living in the country.”.
But the Chinese economy has slowed in the past few years, stymied by problems in the property sector, perpetual unemployment, and weak domestic consumption. “Most of the growth in centimillionaires came in between 2013 and 2020,” said wealth analyst Andrew Amoils of New World Wealth. Ultra-high-net-worth individuals have only grown by around 10% since then. Populations of such affluent Indians are expected to witness remarkable growth in cities such as Hangzhou and Shenzhen by 2040, largely on account of the booming tech industries. Growth in first half 2024 of 6.9 percent was recorded for GDP in Hangzhou, and industrial sector growth stands at 5.9 percent for the first half of 2024 in the case of Shenzhen.
Ahead, until 2040, the centimillionaire growth in China is expected to be markedly strong, standing at between 80 and 100 percent, while exceeding an average global increase rate of about 75 percent. Other Asian and Middle Eastern cities that will experience up to a 150 percent growth in the ultra-wealthy population are Taipei, Dubai, Abu Dhabi, and Bengaluru. Conversely, the more mature wealth centers are relatively stagnant, at less than 50% growth, in Zurich, Chicago, Moscow, and Madrid.
The dull overall performance in Europe is credited to the slow expansion in their core markets, Germany, France, and the United Kingdom. Nonetheless, there are “resilient European markets such as Monaco, Malta, Montenegro, and Poland, which saw a big leap in their centimillionaires.”.
U.S. cities such as New York, Los Angeles, and the San Francisco Bay Area are likely to expand their extreme high net worth population further. The fate of future U.S. wealth expansion, however will depend on the results of presidential elections, which can change fiscal, monetary, and policy climates in a very short period. According to independent studies, more Americans will seek second residences or alternative citizenships.
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