Chinese millionaires to double by 2026, says Credit Suisse

The number of Chinese millionaires is expected to double by 2026, says a report by Credit Suisse, despite Beijing's national drive to ease wealth inequality and a sharply slowing economy.

Total household wealth in China reached US$85.1 trillion (HK$663.78 trillion) in 2021, up 15.1 percent or US$11.2 trillion from 2020.

Beijing's "common prosperity" push has in recent years sharply escalated in official rhetoric and a crackdown on excesses in industries including technology and private education has rattled investors.

In 2021, China had 6.2 million millionaires, up by more than a million from 2020, while globally the total number of millionaires increased by 5.2 million. The number in China is expected to double to 12.2 million in five years time, the report said.

The bullish China wealth growth outlook comes even as the world's second-largest economy narrowly avoided contracting in the second quarter as widespread Covid-19 lockdowns and the slumping property sector hit consumer and business confidence.

Global household wealth expanded 12.7 percent in 2021, the fastest annual rate recorded, excluding exchange rate factors, but prospects were overshadowed by heightened geopolitical and financial uncertainties.

In addition, global household wealth reached US$463.6 trillion by the end of 2021, mainly propelled by a strong rise in financial assets, which worsened inequality in 2021.

The US, China and Canada led in household wealth expansion, the report said. The US saw an increase of US$19.5 trillion, China US$11.2 trillion and Canada US$1.8 trillion.