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January 29, 2014 at 10:17 AM
This Friday marks the first day of the Year of the Horse in the Chinese lunar calendar.
Information analyzed by Wealth-X, a research firm, shows that those born in the Horse Year are the most highly educated among ultrahigh-net-worth individuals. Those in this group, who have about $30 million or more in assets, also donate more to educational causes than any other zodiac sign.
Plus, the Year of the Horse has the highest percentage of self-made UHNW individuals, of all the 12 Chinese zodiac signs.
For instance, self-made millionaire Wenliang Wang, founder of China Rilin Construction Group, was born in 1954 and is estimated to be worth $620 million. Wang is involved in several philanthropic projects at New York University and the National University of Singapore.
After a challenging Year of the Snake, the consulting and research group Wealth-X shares its eight predictions for China’s ultrahigh-net-worth investors over the next 12 months:
1. Jump in $500 Million Group
The population of Chinese UHNW individuals with net worth above $500 million will grow by almost 6% to 535 individuals, while the growth of the overall Chinese UHNW population is expected to stagnate. In 2013, the UHNW population in China included 10,675 individuals—down from 11,245 people in 2012, a drop of 5%.
2. Growth in UHNW Wealth
Chinese UHNW individuals with net worth in excess of $500 million will experience 4% growth in wealth to $630 billion. Total Chinese UHNW wealth is expected to increase by 2% in 2014 to $1.545 trillion. This figure declined by 4% in 2013 to $1.515 trillion, as economic growth weakened from expected levels, export growth declined and the stock market fell accordingly.
3. Growing UHNW Liquidity
The liquidity of the average Chinese UHNW individual will increase from 12% to nearly 14% of net worth, as some people move between wealth tiers and chose to hedge against potential economic difficulties. Still, Chinese UHNW individuals’ liquidity remains low vs. average liquidity of UHNW individuals worldwide, with 25% of their net worth in liquid assets.
4. China’s UHNW to Top Japan’s
Despite some weakness 2013, China’s total UHNW population and wealth are expected to top Japan’s by 2026, the next Year of the Horse. Research estimates that in 12 years, China’s UHNW demographic group could be worth some $4.2 trillion vs. $3.3 trillion for its Japanese counterpart.
