The total wealth held by China’s moderately wealthy – households with financial assets of between US$100,000 to US$2 million – will be double that of their American counterparts in 2020, a study shows.
The United States topped the list last year with households from this wealth segment holding US$23 trillion in financial assets, according to an Economist Intelligence Unit global report sponsored by Citi.
The report, which measured the trend in 32 countries, says this group – which it calls “the new wealth builders” (NWBs) – is the world’s fastest growing wealth segment. China occupied second place in last year’s report when the nation’s NWB assets amounted to US$19.5 trillion.
But the Economist Intelligence Unit forecasts that the US will soon cede the top spot to China. This wealth segment will grow faster in the world’s second-largest economy because of its population advantage and a rate of economic growth fuelled by the loosening of monetary and fiscal policy, the report said.
NWB assets in China were expected to soar to US$53 trillion in 2020, almost double the US in second place with total assets of US$27 trillion.
The average wealth per NWB household in the US (US$491,000) will still maintain a lead over China (US$319,000), however, the report said.
NWBs typically do not consider themselves wealthy, and their wealth is earned, not inherited, it said. “They are charitable … and invest with a conscience.”
Read more at South China Morning Post.