China Minted Two New Billionaires A Week In 2017

Marcus Newton
October 29, 2018

The world's 2,158 billionaires increased their combined wealth by almost $1.4tn a year ago, which is more than the GDP of Spain or Australia.

"Really, the story revolves around China, where we're seeing unbelievable and unprecedented wealth", Mathews said.

Ravi Raju, head of Asia Pacific Ultra High Net Worth at UBS Global Wealth Management, said Asia´s billionaires "are young and relentless".

This incident, along with the recent show trials and tribulations of Chinese executives, shows that while the country has ramped up its production of new billionaires, the megarich and the bankers who chase them face a far more complex and uncertain future than their Western counterparts.

Breaking it down by source for the newest entrants, 40% are from the consumer and retail sector, followed by 17% from financial services and 11% in the technology sector.

These mega-rich increased their wealth by a $1.4 trillion which is more than the entire GDP of Spain or Australia. "They have more information and can be more courageous about trying new ideas and being entrepreneurial". The average age is 55.75 in Greater China.

Breaking the numbers down geographically, the US continues to dominate as the home to the world's wealthiest.

More than 40 of the 179 new billionaires created last year inherited their wealth, and given the number of billionaires over 70 the report's authors expect a further Dollars 3.4 trillion to be handed down over the next 20 years.

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The United States, however, retains the greatest amount of billionaire wealth as the wealthiest individuals live there.

The report said the Americas region was still home to the largest concentration of billionaire wealth, but wealth creation was slowing.

While there were 53 new billionaires in the 2017, China's ranks of the megawealthy grew at double that rate-or just over two a week.

Asian billionaires are the youngest globally, with an average age of 61.43. "The old way of thinking was that these technologies were a vertical", said Mathews.

And the geographical mix of where huge fortunes are being made has bent sharply toward Asia and, specifically, China.

One Chinese billionaire told the researchers: "Nowhere else in the world can you find better conditions for growth than in China". Today, that number is 373 and climbing. Last year, 106 new billionaires were created there - equivalent to over two new billionaires being minted each week.

According to UBS, this trend will continue to accelerate over the next 20 years, given that there are now 701 billionaires over the age of 70.

-Julia La Roche is a finance reporter at Yahoo Finance.

Other reports by MaliBehiribAe

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