We recently analyzed the distribution of wealth across the globe in a comprehensive report on the Top 20 Countries Wealthy People Choose to Live In and found that Asia is quickly becoming a hub for millionaires and billionaires. But which country hosts the most number of wealthy people? Is it China? Before we answer this question, let’s take a look at the economy of China.
China’s Wealth Overview
China is the largest economy in the world today, surpassing the US GDP (PPP) in 2024. According to the data from the IMF, China has a GDP (PPP) of $35.29 trillion compared to the US GDP (PPP) of $28.78 trillion. China is expected to continue its reign at the top and sustain its position as the largest economy in the world by 2100, with a projected GDP (PPP) of $101.86 trillion by 2100. China has the second largest population, with a total of 1.41 billion people, as per data from the World Bank. Despite such a large population, China still ranks among the wealthiest countries by per capita net worth. As of 2022, China had a per capita net worth of around $75,731. With a total wealth of around $84.48 trillion, China shares almost 18.6% of the total share of global wealth.
China’s Economic Slump, Is it Still the Best Country for Wealthy People?
China has been suffering from an economic crisis, mainly driven by the slump in its property market. The real estate giants including China Evergrande Group (OTC:EGRNF), Country Garden Holdings Company (OTC:CTRYY), and Zhenro Properties Group Limited (HKG:6158) are facing debt defaults. On April 12, the South China Morning Post reported that Zhenro Properties Group Limited (HKG:6158) failed to repay around ¥14.58 billion in principal and interest in senior notes, leading to ¥13.37 billion in defaults. By the end of 2023, Zhenro Properties Group Limited (HKG:6158) had ¥61.86 billion of outstanding interest-bearing debt, with almost 90% of that due in 2024. China Evergrande Group (OTC:EGRNF) was initially the one that triggered massive debt defaults back in December 2021. On January 29, Bloomberg reported that China Evergrande Group (OTC:EGRNF) was heading for liquidation after a Hong Kong court ordered it to be wound up. By the end of June 2023, China Evergrande Group (OTC:EGRNF) had total liabilities of over $333 billion.
The collapse in Chinese real estate in recent years has jolted one of the largest economies in the world and led to severe wealth destruction, erasing over $100 billion from the fortunes of real estate tycoons. Almost 155 billionaires lost the billionaire status in 2024, as per the Hurun Global Rich Report 2024. Despite such a big loss, China still has the most billionaires in the world in 2024.
China is a large economy and it has struggled due to deflationary pressures and the real estate market crisis. However, being a large economy, China is an economic force and controls 18.6% of the global wealth. In addition, China is the largest manufacturing country in the world and EV industry is one of its strongest markets. Chinese EV giants including Li Auto Inc. (NASDAQ:LI), BYD Company Limited (OTC:BYDDF), and XPeng Inc. (NYSE:XPEV) are some of the biggest EV producers in the world. According to a report by Trend Force, China has the largest share of NEVs, reported at around 60% of the global market share. In Plug-in Hybrid Electric Vehicles, BYD Company Limited (OTC:BYDDF) and Li Auto Inc. (NASDAQ:LI) have the largest global market shares at 33.8% and 9.6%, as of 2023. This shows China has a diverse business environment, paving the way for individuals to increase their wealth.
An expansive view of the cityscape, showing the impact of the company’s activities in China.
Is China the Best Country Wealthy People Choose to Live In?
China has the most number of billionaires at 814 in 2024. In 2023, China had 98,551 UHNWIs, individuals with a net worth equal to or more than $30 million. Moreover, the total number of millionaires, including UHWNIs, was around 6.23 million, as of 2022. China remains a hub for wealthy people, and you would be surprised to find out that it is not the top country where wealthy people choose to live.
To see the distribution of wealth across the globe and also the top country where wealthy people choose to live, see our comprehensive report on the Top 20 Countries Wealthy People Choose to Live In.
Disclosure: None. This article is originally published at Insider Monkey.