China boasts 3rd-largest population of millionaires in the world

Last Updated: Fri, Dec 03, 2010 12:20 hrs

A survey has found that China has the third-largest population of millionaires in the world, behind the United States and Japan.

According to research by the Boston Consulting Group (BCG), at the end of 2009, China had 670,000 households with more than 1 million dollar wealth, up 60 percent from the same period in 2008, China Daily reported.nd the country's composite wealth grew by some 28 percent from the end of 2008 to the end of 2009, to 5.4 trillion dollars.

"The fast increase is driven by China's strong economic growth, the rise of private-sector enterprises and the development of capital markets," Frankie Leung, partner and managing director of BCG, said.

According to BCG's research, entrepreneurs account for the majority of China's high-net-worth population (those with assets under management exceeding 1 million dollars).

But there are growing numbers of wealthy Chinese who have different sources of wealth, such as executives, professional investors, and the independently wealthy.

In addition, the mix of entrepreneurs is diversifying beyond real estate, manufacturing and commodities into industries such as the pharmaceutical and high technology.

Despite its remarkable growth, China's composite wealth still has tremendous room to expand.

"The sheer volume of new wealth presents an attractive opportunity for growth, but wealth managers should focus on the nuances of how and where this wealth will be created," Leung stated. (ANI)