China, Socialism & Consumer Behavior: 6 in 10,000 people are multimillionaires?

6 in every 10,000 people in China have a personal wealth of more than 10 million yuan ( nearly 1.5 million US dollars), shows the recently issued “Hurun Wealth Report 2009”. After the report came out, it immediately raised a lot of doubts among netizens: “Have Chinese people really become so rich?”

According to the result of a recent internet survey, 60 percent of netizens suspect the results of the report, saying that they don’t believe that Chinese people have become so rich (something I ask myself since I first came to China). Only a mere 30 percent of netizens believe that the report is basically true and that this many Chinese people have really become very wealthy.

Are 6 in 10,000 people multimillionaires in China?

The “Hurun Wealth Report 2009,” issued recently by Hurun Research Institute, points out that at present, China has 825,000 individuals with personal wealth of more than 10 million yuan and 51,000 individuals with personal wealth of more than 100 million yuan, and that 6 in every 10,000 people are multimillionaires.

Of these people, Beijing has 143,000 people with over 10 million yuan and 8,800 people with over 100 million yuan; Guangdong Province has 137,000 people with over 10 million yuan and 7,800 people with over 100 million yuan; and Shanghai has 116,000 people with over 10 million yuan and 7,000 people with over 100 million yuan.

Rupert Hoogewerf, drafter of the report, emphasized that the number of “invisible rich people” who are inaccessible by this survey is far more than the number listed in the report.

Hoogewerf said that the remarkable increase in the number of rich people in various regions indicates that China’s local economies have maintained sound development momentums, driven by the booming real estate and stock markets over the past several years.

In addition, the report also shows that four large groups – real estate speculators, merchants, high-paid professionals and professional stock investors – are the “major sources” of China’s rich population.

60 percent of netizens doubt Hurun Wealth Report

In an online questionnaire conducted by Chinanews.com, when asked “What is your view on the Hurun Report’s claim that there are 6 multimillionaires in every 10,000 Chinese”, over 60 percent of netizens doubt the results of the report, saying that they do not believe that Chinese people are so rich. Only 30 percent of netizens believe that the report was mostly true, because some people have indeed become rich.

Of the respondents, a Jiangsu netizen commented on Chinanews.com that “He (Hoogewerf) has overestimated China’s wealth.”

Also, a Guangxi netizen demonstrated his concern, “Has (he) made a survey on how many poor people there are in China, or how many people have only just solved their basic food and clothing needs?”

The results of the survey only goes to prove — most of the time — netizens over react to foreign reports, instead of asking themselves why — in this case — the number of millionaires went up so quick in China.