Rich become richer in China despite of the crisis
According to a report on private property released by China Merchants Bank and consultancy Bain & Company on March, 30, 2009, there will be 320,000 people who each possess at least 10 million yuan ($1.46 million) of assets by the end of 2009, up 6 percent from 2008.
Including cash, stocks, funds, securities and real estate investments, the total assets covered in the report are expected to surpass 9 trillion yuan ($1.29 trillion) in 2009, up 7 percent from 2008.
The survey investigated 700 interviewees by questionnaires or face-to-face interviews. All the respondents had property of at least 10 million yuan. The investigation started on the mainland in late December in 2008 and lasted three months.
According to the survey, Guangdong province ranked first in the population of rich people, closely followed by Shanghai, Beijing, Jiangsu and Zhejiang. Last year, Guangdong province alone has 46,000, or 15 percent of China’s wealthiest people.
Ma Hua, deputy director of CCTV.com’s R&D center, was not surprised by the results of the survey. Ma counted the rich ones among his friends and observed that they are hardly affected by the current economic downturn because most of them are conservative investors. Ma said his friends made their fortunes by cautious investments in stocks. “Since they make money all by themselves instead of inheriting property, they tend to be conservative in using it,” he said.
It’s generally assumed that the rich would prefer risky investment. However, according to this report, 80 percent of the interviewees prefer investment with medium or low risk.
Liu Zhishuo, who did not unveil his wealth, defines himself as a conservative investor. He is a very cautious investor in high technology. Liu said he’ll invest if a company’s value could increase progressively in one or two decades. “What I care is long-term value. I don’t make short-term investment,” he said. In Liu’s opinion, to seize opportunities needs years of experience instead of good luck. There’s less chance to get quick fortunes nowadays.
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