The number of Chinese citizens with at least US$1 million in financial assets, excluding the value of home real estate, increased by 12 percent year-on-year in 2003, pushing the total to 236,000, according to the 2004 World Wealth Report issued by Merrill Lynch and Capgemini.

China enjoyed the sixth fastest growth rate in the world for the number High Net Worth Individuals (HNWIs), defined as those with at least US$1 million in financial assets, excluding the value of home real estate, last year.

Hong Kong recorded the largest growth in HNWIs with a 30 percent year-on-year increase during 2003. Merrill Lynch attributed Hong Kong's enormous increase to the booming Chinese economy, which has strengthened consumer confidence and increased foreign investment in the Special Administrative Region.

The growing number of HNWIs in China's mainland, meanwhile, is becoming increasingly evident, especially in the country's largest cities. In Shanghai for example, the opening of various outlets selling luxury brands such as Gucci, Rolex, and Louis Vutton are evidence that Chinese demand for high-priced goods is large and growing. Despite a quick pace of growth, however, the number of HNWIs in China is still relatively small when compared to the United States, which was home to 2.272 million HNWIs in 2003.

Source: agencies