(Yicai Global) March 31 -- The entry-level point for wealth freedom in China’s first-tier cities is CNY19 million (USD2.9 million), the Hurun Research Institute said in a report released today.
The threshold amount was mainly made up of a 120-square-meter urban home, two cars, CNY600,000 (USD91,440) in annual after-tax household income and CNY8 million in investments.
The Hurun Research Institute divides wealth freedom into four stages: entry-level, intermediate-level, advanced-level, and international-level, and subdivides them into China’s first-, second-, and third-tier cities.
In first-tier cities, the threshold for advanced-level wealth freedom is CNY190 million (USD29 million), which mainly includes a 400-sqm urban house, a 300-sqm second home in the suburbs, four cars, CNY6.5 million in annual after-tax household income, and CNY65 million in investments.
The threshold for advanced-level wealth freedom in second- and third-tier cities is CNY120 million and CNY69 million, respectively.
The threshold for international-level wealth freedom is CNY350 million, equivalent to USD50 million. That generally entails a 600-sqm urban residence, a 400-sqm suburban second home, two 400-sqm vacation homes -- one in the mountains and one on the coast -- four cars, CNY10 million in annual after-tax household income, and CNY100 million in investments.
Over 60 percent of high-net-worth individuals surveyed plan to travel around the world after achieving financial freedom, according to the report. Nearly 40 percent were looking to study and enrich themselves, while 30 percent had plans for family trusts and charitable donations.
The number of wealthy families in China with assets worth at least CNY6 million topped 5 million for the first time, a Hurun report released on Feb. 8 showed.
The number of ‘high-net-worth families’ with CNY10 million in assets reached 2.02 million, while ‘ultra-high-net-worth families’ with assets of CNY100 million and ‘international ultra-high net worth families’ with USD30 million tallied 130,000 and 86,000, respectively
Editor: Peter Thomas