China: Digging out the wealth deep within

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Chong_qing_2
Chongqing, China’s second-fastest growing city in 2012

Targeting high rollers in the Asia-Pacific to pitch your latest, most inspired service or product? You’d be right-minded to set your scopes on China, where the broadest segment of high-net worth (HNW) individuals in the world are, according to global consultancy Accenture.

But you’d be wrong to guess that the greater heap of those individuals is located in one of the country’s coastal megacities, the common showcase capitals of China’s newfound wealth.

Second-tier cities in China represent 30 per cent of the country’s HNW market, compared to the 20 per cent that first-tier cities (such as Beijing and Shanghai) account for, according to a report by the China Daily.

Although the Chinese economy has taken a sluggish course in 2013, sparking global fears of a slowdown, its HNW market remains a topic of top intrigue. Yet the HNW market is largely underserved by global wealth managers, sparking foreign interest to gear up fact-finding missions and work towards solidifying networks in the world’s second largest economy. Of the more than $4 trillion of investible assets held by Chinese HNW individuals in 2011, approximately $266 billion were under management, or 7 per cent of the total, according to Accenture. 

These major pockets of wealth are, however, obscured; nestled deep within the countries hinterlands one must go, where typically high-octane property, industrial and commercial growth that China has been made headline worthy of can be found in its most zesty zeal.

After being enacted by the Chinese government over a decade ago, the “Go West” policy has begun to bear conspicuous results, with economic growth in Sichuan and Henan, provinces deep within China’s interior, likely to outpace that of Guangdong, the country’s (and arguably world’s) manufacturing hub, according to research by Japanese financial conglomerate Nomura.

The governmentally administered city of Chongqing, a sprawling megalopolis with nearly 29 million people, is another powerhouse: the city’s economy grew to 1.146 trillion yuan ($184.23 billion) in 2012, up 13.6 percent year-on-year, the second-fastest growth rate in China.

Finding the correct local elements to guide you through the backdoors, where growth deep within is at its most rapid, is the best tool to bring businesses closer to locating the most unsung potential China holds. Taking a good look at the lesser known, yet vitally integral, cities of China is a good start.

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Reading Time: 2 minutes

Chongqing, China’s second-fastest growing city in 2012

Targeting high rollers in the Asia-Pacific to pitch your latest, most inspired service or product? You’d be right-minded to set your scopes on China, where the broadest segment of high-net worth (HNW) individuals in the world are, according to global consultancy Accenture.

Reading Time: 2 minutes

Chong_qing_2
Chongqing, China’s second-fastest growing city in 2012

Targeting high rollers in the Asia-Pacific to pitch your latest, most inspired service or product? You’d be right-minded to set your scopes on China, where the broadest segment of high-net worth (HNW) individuals in the world are, according to global consultancy Accenture.

But you’d be wrong to guess that the greater heap of those individuals is located in one of the country’s coastal megacities, the common showcase capitals of China’s newfound wealth.

Second-tier cities in China represent 30 per cent of the country’s HNW market, compared to the 20 per cent that first-tier cities (such as Beijing and Shanghai) account for, according to a report by the China Daily.

Although the Chinese economy has taken a sluggish course in 2013, sparking global fears of a slowdown, its HNW market remains a topic of top intrigue. Yet the HNW market is largely underserved by global wealth managers, sparking foreign interest to gear up fact-finding missions and work towards solidifying networks in the world’s second largest economy. Of the more than $4 trillion of investible assets held by Chinese HNW individuals in 2011, approximately $266 billion were under management, or 7 per cent of the total, according to Accenture. 

These major pockets of wealth are, however, obscured; nestled deep within the countries hinterlands one must go, where typically high-octane property, industrial and commercial growth that China has been made headline worthy of can be found in its most zesty zeal.

After being enacted by the Chinese government over a decade ago, the “Go West” policy has begun to bear conspicuous results, with economic growth in Sichuan and Henan, provinces deep within China’s interior, likely to outpace that of Guangdong, the country’s (and arguably world’s) manufacturing hub, according to research by Japanese financial conglomerate Nomura.

The governmentally administered city of Chongqing, a sprawling megalopolis with nearly 29 million people, is another powerhouse: the city’s economy grew to 1.146 trillion yuan ($184.23 billion) in 2012, up 13.6 percent year-on-year, the second-fastest growth rate in China.

Finding the correct local elements to guide you through the backdoors, where growth deep within is at its most rapid, is the best tool to bring businesses closer to locating the most unsung potential China holds. Taking a good look at the lesser known, yet vitally integral, cities of China is a good start.

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