Shenzhen city skyline.
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According to a recent report, Shenzhen, China has seen the fastest growth in the number of millionaires over the past decade and is expected to see an influx of even more millionaires in the coming years.
The number of millionaires in Shenzhen increased by 140% It is reported From Henley & Partners, New World Wealth and Investment Immigration Consultants.
growing up Far more than In China’s other first-tier cities, including Beijing and Shanghai, their millionaire populations increased by 90% and 84% respectively.
In 2023 alone, the number of millionaires in Shenzhen will increase by 10%, while the number of millionaires in Beijing and Shanghai will decrease by about 5% in an escape High net worth individuals from China.
“Overall, the number of millionaires in China is down 3% in 2023, so Shenzhen is clearly outperforming the country in 2023,” New World Wealth analyst Andrew Amoils told CNBC.
Much of Shenzhen’s surge in millionaires is due to new business and organic revenue growth in the city, while about 30% of the growth is due to an influx from cities such as Beijing, Shanghai and Hong Kong, Amers said.
Amors added that Shenzhen, also known as China’s Silicon Valley, is expected to continue growing “very strongly” through 2040, while Beijing and Shanghai are likely to see moderate growth.
This comes against the backdrop of China’s economy stagnating over the past few years as its real estate industry struggled.
Shenzhen’s Economic growth of 6% in 2023the growth rate exceeds that of Beijing and Shanghai.
The Chinese city of Hangzhou ranked second with a millionaire growth rate of 125%, while the Indian city of Bangalore and the U.S. city of Austin ranked third and fourth respectively; Guangzhou, China, ranked fifth, Amers told CNBC.
Shenzhen’s progress
“What has set Shenzhen apart from other first-tier cities over the past three decades is its relatively loose governance and welcoming attitude towards immigrants,” said Erica Tay, head of macro research at Maybank.
She added that compared with Shanghai, whose economic strength comes from state-owned enterprises, Shenzhen’s corporate landscape is dominated by private entrepreneurs.
In addition to being a hot spot for entrepreneurship, Shenzhen is also Home city for global tech giants For example, Tencent, Huawei, BYD.
“The pro-business and innovation-friendly regulatory environment (in Shenzhen) has created waves of self-made wealth,” Zheng said.
Shenzhen’s ability to create more millionaires will depend on its ability to maintain an enabling environment for its greatest resource: entrepreneurs.
Erica Cheng
Director of Macro Research, Maybank
In 1980, the metropolis was designated one of China’s first special economic zones and opened to foreign investment, technology and market-oriented reforms.
Zhang Zhiwei, chief economist at Pindian Asset Management, said that proximity to Hong Kong, which is business-friendly and efficient, also helps Shenzhen learn how to develop its economy.
“I do think Shenzhen is the city with the most economic potential in mainland China,” he said.
With 50,300 resident millionaires, Shenzhen currently ranks 27th among the richest cities in the world, and at its current growth rate, Shenzhen should be in the top ten by 2040.
“Going forward, Shenzhen’s ability to create more millionaires will depend on its ability to maintain an enabling environment for its greatest resource: entrepreneurs,” said Maybank’s Tai.
New York tops the list of the world’s wealthiest cities, followed by California’s Bay Area, according to a recent compilation by Henley & Partners. Tokyo and Singapore ranked third and fourth respectively.
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