Anne Gibson

Property editor of the NZ Herald

Property favoured asset of wealthy classes

Guangzhou is the home of some of the wealthiest people in China. Photo / Thinstock
Guangzhou is the home of some of the wealthiest people in China. Photo / Thinstock

Real estate is a big drawcard for rich Chinese.

The China Private Banking Report 2012, by China Minsheng Bank and McKinsey, surveyed 700 Chinese with more than US$1 million ($1.2 million) in investable assets and found 30 per cent poured their money into property, which they saw as very attractive.

And they're keen to get their money out of China - 60 per cent said they had assets offshore.

"It is common for Chinese high net worth individuals to have assets overseas. The reasons are mainly for risk diversification and increased product selection," the report found.

Most of the rich are big gamblers - 70 per cent prefer high risk and high return products.

China is Asia's most important high net worth market, tipped to contribute over half the region's growth by 2015, excluding Japan, the report said.

And China's wealth is growing at one of the fastest paces in the world.

The report said Southern China around the Pearl River delta, which includes Guangzhou, accounted for 40 per cent of the wealthiest people in China, the Yangtze River delta region further north, which includes Shanghai, had 31 per cent and the Bohai Sea region, which includes Beijing, had 11 per cent.

The rich are mainly business owners but include corporate executives, professionals, retirees and housewives. Anne Gibson

- NZ Herald

© Copyright 2014, APN New Zealand Limited

Assembled by: (static) on production bpcf02 at 25 Oct 2014 04:34:52 Processing Time: 400ms