More reach multimillionaire rank as investor confidence improves

Top News | Kevin Xu 24 Sep 2020

There were nearly 504,000 multimillionaires in Hong Kong with net assets of HK$10 million or above as of May - up 22 percent from a year before - as investor confidence improved, according to a survey.

The total net asset value was calculated based on the respondents' estimation and the estimated values were affected by market sentiment and other situations, said Josephine Lee Kwai-chong, head of retail bank at Citibank Hong Kong, which commissioned the study.

Lee said supporting measures by governments to tackle the pandemic was one factor that helped improve investor confidence for the year.

"The number of multimillionaires goes up and down each year, but in the long term, it has been an upward trend," she added.

The Hong Kong Affluent Study 2019/2020 was conducted in two phases - the first from November to December 2019 and the second from March to May 2020. More than 3,500 residents aged 21 to 79 were randomly interviewed via telephone.

The median of net assets of multimillionaires was HK$17 million, up from HK$16.3 million in 2018.

"This was probably due to the positive impact of rising property prices, a strategy of balanced allocation of diversified assets that was conducive to seizing investment opportunities brought about by global market volatility, and the convenience and efficiency of diversified investments made possible by the flexibility of digital wealth management," Lee said.

Multimillionaires allocated 78 percent of their total net assets to properties. And then 10 percent went to cash and deposits, 6 percent to stocks and 4 percent to funds and bonds.

Nearly eight in ten expected property prices to fall in the next 12 months.

There were more male multimillionaires than female, 56 percent to 44 percent. The average age of male multimillionaires was 58, compared with 57 for their female counterparts.

As a measure of the current level of satisfaction with life, multimillionaires with total net assets of more than HK$10 million had a significantly higher happiness index. Based on a scale of 0 to 10, the average score was 6.8.

Female multimillionaires had a happiness index of 7.0, while their male counterparts had 6.5.

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