Connect with us

China

China’s Rich to Hit 280 Million by 2020

Looking for a thick wallet to expand your business ? Forget about the US. 280 million. That’s the total number of affluent consumers China is expected to have by 2020

Published

on

Shanghai shopping

As China looks to shift its export-dependent economy to a greater reliance on domestic consumption, one number is in its favor: 280 million.

That’s the total number of affluent consumers China is expected to have by 2020 – more than doubling the current total of 120 million — according to a new study by consultancy Boston Consulting Group.

Shanghai shopping

There were 1,363 billionaires in China last year, and the number of people worth at least 10 million yuan are no fewer than 875,000. Picture: Camilla Davidsson

BCG describes as affluent people with annual household disposable incomes of between $20,000 and $1 million.

The upper affluent — those earning between $40,000 and $1 million per year — will account for 40% of the 280 million, the BCG study said. (BCG puts people whose families have disposal incomes over $1 million per year in a separate category, high net-worth individuals.)

China has been trying for years to get its people to spend more, in part to wean the world’s No. 2 economy off export-led growth at a time of falling consumption abroad. But regular Chinese workers, unsettled by the country’s meager health care and pension systems, remain reluctant to part with their money. That leaves the wealthy as the best hope for gains in domestic consumer spending in the short- and medium term.

via Report: China ‘Affluent’ Population to Hit 280 Million by 2020 – China Real Time Report – WSJ.

Click to comment

Leave a Reply

Economics

China’s new three-child policy highlights risks of aging across emerging Asia

Thailand’s (Baa1 stable) total dependency ratio is set to jump nine percentage points to 51% by 2030 – a faster increase than China’s – which will pressure public and private savings through higher taxes and social spending, reducing innovation and productivity gains.

Published

on

Street vendor in Bangkok

Population aging in China (A1 stable) and other emerging markets in Asia will hurt economic growth, competitiveness and fiscal revenue, unless productivity gains accelerate, according to a new report by Moody’s Investors Service.

(more…)
Continue Reading

China

Clear skies over Asia’s new foreign investment landscape?

Published

on

Compounding the fallout of the US–China trade war, the global pandemic and recession have caused considerable speculation on the future of foreign investment and global value chains (GVCs). But though there is likely to be some permanent change, it will probably not be as great as politicians expect.

(more…)
Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 14,160 other subscribers

Wise

Recent