The number of ultra-high-net-worth individuals in China will increase this year, reflected in part by sales of private jets and other luxury items, according to Wealth-X.
Private aircraft ownership in China, which has become a status symbol among the wealthy, is expected to double this year to 150, says Wealth-X, a financial research firm that specializes in the ultra-high-net-worth sector. The number is less than 1 percent of the number of private jet owners in the U.S.
Spending on luxuries by wealthy Chinese this year will amount to $7 billion, or $570,000 per ultra-high-net-worth individual. Luxury spending in the U.S. is expected to be $1.3 million per ultra-high-net-worth individual.
Wealth-X defines ultra-high-net-worth individuals as those with $30 million or more in assets.
“As China makes the transition to an economic model based on domestic consumption, 2013 is set to be a prosperous year for the Chinese ultra-high-net-worth population,” says Wealth-X CEO Mykolas D. Rambus.
China’s ultra-high-net-worth population is expected to increase by 9 percent to 12,250 in 2013, while the combined net worth of these individuals will rise by 8 percent to $1.7 trillion, according to Wealth-X.
Charitable giving in China will surpass $2 billion, or $165,000 per ultra-high-net-worth individual, compared to $410,000 in the United States.
Real estate holdings will top $150 billion, which is 36 percent of total real estate holdings in Asia, according to Wealth-X.
By 2025, the combined net worth of ultra-high-net-worth individuals in China will be $4.1 trillion, surpassing the projected collective wealth of ultra-high-net-worth individuals in New York, London and Paris, according to Wealth-X.