Breaking News, World News and Taiwan News.

Asia surpasses North America with highest number of millionaires: study

NEW YORK -- Weakening economies that roiled markets last year also took their toll on the world's rich, and faster-growing Asia for the first time had more millionaires than North America, according to a study released on Tuesday.

A new report said the global personal wealth of people with US$1 million and more to invest fell in 2011 for the second time in four years, reflecting the eurozone crisis and economic sluggishness in developed markets. But several emerging markets also felt pain, as the number of millionaires in India and Hong Kong fell by almost one-fifth.

And with Europe's debt crisis still in full throttle, the outlook for wealth creation in 2012 remains dim, according to Capgemini and RBC Wealth Management's latest world wealth report.

The world's population of millionaires grew by 0.8 percent to a record 11 million, according to the report, yet their collective wealth fell by 1.7 percent to US$42 trillion. Every region except the Middle East saw declines in wealth. It was the first global drop in millionaire wealth since the 2008 financial crisis, when the ranks of the wealthy fell by 15 percent and their wealth contracted by 20 percent.

Families with US$30 million or more to invest saw their combined wealth fall 4.9 percent and their ranks shrink by 2.5 percent to 100,000 people. This decrease reflects their holdings in higher-risk and less liquid investments like hedge funds, private equity and real estate.

Sinking stocks, slowing exports and slumping currencies hit some countries especially hard. India saw its ranks of millionaires fall by 27,500, or 18 percent to 125,500 last year, reflecting a one-third decline in stock market values and a weakening rupee. Hong Kong's millionaire population fell by 17.4 percent as euro zone woes weighed on its own growth.

Last year was the first time India's wealthy declined in population since 2008, when their ranks fell by 32 percent amid falling stock prices and lower global demand for goods and services, according to Capgemini.

“It was a challenging environment for our clients,” George Lewis, global head of wealth management at Royal Bank of Canada, said in an interview.

China's Growing Wealth

China's population of those with at least US$1 million to invest rose by 5.2 percent to 562,400 last year. Japan's millionaires increased by 4.8 percent.

Last year was tough on investors, who were buffeted by a tsunami in Japan, a downgrade of U.S. sovereign debt, political unrest in the Middle East and North Africa, and waning confidence in governments struggling to stimulate growth. And weakness in developed markets slowed growth in export economies in Asia and Latin America.

Write a Comment
CAPTCHA Code Image
Type in image code
Change the code
 Receive China Post promos
 Respond to this email
WSJA
Subscribe  |   Advertise  |   RSS Feed  |   About Us  |   Career  |   Contact Us
Sitemap  |   Top Stories  |   Taiwan  |   China  |   Business  |   Asia  |   World  |   Sports  |   Life  |   Arts & Leisure  |   Health  |   Editorial  |   Commentary
Travel  |   Movies  |   TV Listings  |   Classifieds  |   Bookstore  |   Getting Around  |   Weather  |   Guide Post  |   Student Post  |   Terms of Use  |   Sitemap
  chinapost search