Where are wealthy Chinese putting their money these days? Not under the mattress anymore. According to the results from latest research conducted by Horizon Vision Consultant Company in Shanghai, the top 3 investment choices are real estate, bank saving, and special "education investment" funds for their children. This research targeted people with financial assets of RMB 500,000 (about US$60,000) or more. The research was conducted with 921 residents of 7 major cities -- Beijing, Shanghai, Guangzhou, Wuhan, Chengdu, Xian, and Shenyang. The number of rich class in China is assumed 1.5% of the whole population.
Real estate prices have been booming in China's big cities. The new rich of the middle kingdom have been making a significant contribution to this boom. As the country's stock market has been stagnant for most of 2004, people have gravitated toward low-risk bank saving that at least promise a modest return. Another prominent feature of China's urban rich is that they are investing more and more in education along with the general trends toward higher education costs.
This indicates that parents are thinking about how to pass wealth along to the next generation. Presently, there is no inheritance in China, although the assumption is that this will change in the not-too-distant future. Researchers also found an increase in investments in tangible goods, thought to have long-run stable value, such as collectables, gold, and jewelry.
| Type |
* Ratio (%) |
Features |
Image of jobs |
| Cautious |
28 |
Practical, make decision carefully. Prefer low-risk investment and business. |
Managers in large companies |
| Business-Centered |
23 |
Age: 40-50. Effective and detailed planners. Great interests in latest technology. Seek spouse's advice on investment decisions. |
Private business owners, managers in large companies |
| Fashion-Oriented |
19 |
Age in 30s. Trendy, independent; often make quick decisions. Prefer high-risk investments. |
Private business owners, entertainment-related business |
| Family-Oriented |
30 |
Age 30-40. Family-oriented; Likes health lifestyle. Prefer short-term investment. Seek friends' advice on investment decisions. |
Specialist like IT, lawyer etc. |
|
