Recently released “2024 Global Wealthiest Cities Report” shows that the six Chinese cities that made it to the top 50 wealthiest cities globally have on average dropped two spots compared to the previous year, indicating a significant shrink in overall wealth. Data from the “2024 Hurun Global Rich List” also reveals a decline in the Chinese economy as a whole. Some scholars pointed out that both the economic and political situations in China are deteriorating towards a more sinister direction.
On May 7th, the wealth research company New World Wealth published the “2024 Global Wealthiest Cities Report” on its website. In the report, New York City topped the list, followed by the San Francisco Bay Area, Tokyo, Singapore, Hong Kong in the ninth place, and Beijing in the tenth place.
Apart from Hong Kong and Beijing, the other Chinese cities that made it to the top 50 list include Shanghai, Hangzhou, Shenzhen, and Guangzhou.
The ranking is primarily based on the number of residents holding assets worth over $1 million in that city.
Comparing the ranking positions with the previous year’s data, it can be observed that the ranking of these Chinese cities has dropped on average by 2.33 positions. Hong Kong fell from 7th to 9th place, Beijing from 8th to 10th, Shanghai from 9th to 11th, Shenzhen dropped 3 spots from 24th to 27th, Guangzhou dropped 4 spots from 42nd to 46th, only Hangzhou dropped 1 spot from 35th to 36th.
The report indicates that over the past ten years (2013 to 2023), the number of millionaires in five Chinese cities increased on average by 91.5%, while Hong Kong saw a negative growth rate of -4%.
These data seemingly reflect at least three issues: the rapid economic decline in China over the past year, a gradual economic deterioration in Hong Kong over the past decade, and an expanding wealth gap in China.
Comparing to the previous year, due to the decrease in the number of millionaires, the average ranking of wealthy Chinese cities dropped by 2.33 positions on the global ranking in 2024.
Taking Beijing as an example, this year, the number of millionaires decreased from 128,200 to 125,600, a decrease of 2600 individuals; the number of billionaires worth over $100 million decreased from 354 to 347, a reduction of 7 individuals; and the number of billionaires worth over $1 billion decreased from 43 to 42, a decrease of 1 individual.
Chinese economist Li Hengqing recently told Epoch Times that due to the rapid economic decline and collapse of the real estate market in China, “the majority of the people on the billionaire rankings have seen their assets shrink,” with some rich individuals being liquidated, and some even becoming debtors.
On March 25th, the Hurun Research Institute released the “2024 Hurun Global Rich List,” with Nongfu Spring’s chairman, Zhong Shanshan, topping the list as the richest individual in China with a wealth of 450 billion yuan, a 9% decrease compared to the previous year.
The wealth of high-net-worth individuals with assets in the tens of millions in China largely comes from corporate equity. Due to the extreme pandemic containment policies implemented by the CCP previously, leading to economic downturns, the total market value of the Chinese stock market evaporated by $6.3 trillion over the past three years, resulting in a decrease in stock values of these wealthy individuals and a natural shrinkage of their personal wealth. The dramatic decline in real estate prices in China has also led to a decrease in the net assets of wealthy individuals who hold real estate.
Forbes magazine’s “2024 China Rich List” also shows that there are a total of 406 individuals from China on the list, marking three consecutive years of decline in the number of wealthy individuals. The figure stood at 495 people last year and a record 626 people in 2021.
The total wealth of multi-millionaires in China decreased from $1.67 trillion in the previous year to $1.33 trillion, lower than $1.96 trillion in 2022 and $2.5 trillion in 2021.
With the environment in China witnessing economic decline and increased political risks, many wealthy individuals are transferring assets overseas for investment and hedging, with many even choosing to emigrate abroad. This has also contributed to the decrease in the number of wealthy individuals in China.
According to the “Global Wealth Migration Report 2023” released by investment immigration information firm Henley & Partners, an estimated 122,000 high-net-worth individuals worldwide emigrated in 2023, with China leading in outflows of high-net-worth individuals globally, with an expected 13,500 wealthy individuals emigrating, an increase of 2,700 people compared to 2022.
The definition of high-net-worth individuals is those who possess over $1 million in investable assets. Emigrants are defined as those who have lived in the destination country for over half a year, excluding those who only hold resident status without immigrating.
Reasons for emigration vary depending on the country and individual circumstances, but generally aim to achieve asset globalization and risk diversification; overseas status can provide a high level of freedom, including quality of living, education, and retirement benefits.
For Chinese emigrants, besides the aforementioned factors, a more immediate, severe, and pressing issue is the worsening economic, political, and societal environment in China. Furthermore, with the increasing sanctions imposed by the United States on the CCP and various Western societies uniting to adopt multiple countermeasures against the CCP, the business environment for China deteriorates.
Statistics show that on average, each migrant from China takes away $6.6 million. Last year, the 122,000 high-net-worth migrants from China took away approximately $89.1 billion.
Andrew Amoils, Research Head at New World Wealth, pointed out in a report that “the overall wealth growth in China has been slowing over the past few years, indicating that recent capital outflows may be more destructive than before.”
Li Hengqing remarked, “Wherever Xi Jinping focuses, the industry is doomed, and then it collapses.” He used the real estate industry as an example, where some billionaires not only lost all their assets but also incurred significant debts. The CCP is now at a stage where it’s time for the rich to repay their debts, so a significant decrease in the number of billionaires is quite normal.
He especially emphasized that those listed on the billionaire rankings are merely a drop in the bucket compared to the influential and wealthy families within the CCP, such as the grandson of Jiang Zemin, Jiang Zhicheng. Their wealth is hidden, knowing the unfavorable direction, they have long transferred their investment companies from Hong Kong to Singapore. It’s possible that their personal wealth has long been entrusted to other investment companies. Thus, it’s unclear how much wealth they actually possess now.
The “2024 Global Wealthiest Cities Report” reveals that Hong Kong’s ranking dropped from 7th in 2023 to 9th; during the period from 2013 to 2023, the number of billionaires saw a negative growth rate of -4%. This decade coincides with Xi Jinping’s leadership and the gradual mainlandization of Hong Kong, which is evident in this data, proving the gradual economic decline of Hong Kong.
Hong Kong used to be the largest financial center in Asia. However, since the CCP cracked down on the “anti-extradition bill” protests in 2019, implemented the National Security Law in 2020, and more recently the amendment of Article 23 of the Basic Law, Hong Kong’s billionaires have become very apprehensive. Under the current situation where “one country, two systems” is effectively dead, the wealthy and capable individuals in Hong Kong have begun to leave.
Not only are the billionaires fleeing, but many financial and legal elites in Hong Kong are also leaving, with Singapore benefiting the most from this exodus. Many wealthy individuals and elites from Hong Kong have relocated to Singapore. This year, Singapore’s ranking has risen from 5th in 2023 to 4th, which is in part due to the migration of wealthy Chinese individuals from Hong Kong and other places to Singapore. Today’s Hong Kong has lost its former glory and is being replaced by Tokyo and Singapore.
Li Hengqing analyzed that in 2017, the CCP proposed the development of the Guangdong-Hong Kong-Macau Greater Bay Area and the establishment of the Hainan Free Trade Zone in 2020, aiming to replace Hong Kong’s position and mainlandize Hong Kong. This is also one of the reasons leading to the overall economic decline in Hong Kong.
The “2024 Global Wealthiest Cities Report” shows that over the past ten years (2013 to 2023), except for the negative growth in Hong Kong, the number of millionaires in the top 50 Chinese cities has continued to increase. Beijing saw a growth of 90%; Shanghai grew by 84%; Shenzhen increased by 140%; Hangzhou rose by 125%; and Guangzhou expanded by 110%.
It is noteworthy that despite the economic downturn last year leading to a decrease in the number of wealthy individuals in China, the number of billionaires in China has been steadily increasing over the past 9 years. Conversely, the income growth for the average Chinese is relatively slow.
While Xi Jinping has been vigorously advocating and promoting “common prosperity,” the figures above suggest that the wealth gap in China is gradually widening.
The real income situation of Chinese people and the wealth gap, among other aspects, lack specific figures and are considered state secrets. However, former Premier of the State Council Li Keqiang admitted before his passing that at least 600 million people in China earn less than 1,000 yuan per month. This enormous wealth gap in China is evident.
“Now the entire China is in a state of major decline. Both the economy and politics are descending towards a more sinister direction,” Li Hengqing remarked.