Asia Billionaires Overtake US for 1st Time, Led by Chinese

Asia Billionaires Overtake US for 1st Time, Led by Chinese

Asia Billionaires Overtake US for 1st Time, Led by Chinese

  • Asia leads the world with billionaires, China leads the Asians
  • Peer networks are playing an increasingly important role for billionaires when it comes to making, spending and giving away money

Billionaire wealth increased 17% to $6-T in Y 2016, after a decline the prioryear, UBS AG and PricewaterhouseCoopers (PwC) said in a report issued Thursday. Led by China, the number of the region’s billionaires surpassed the US for the 1st time.

However, American billionaires still control the most wealth at $2.8-T.

The gain in total billionaire wealth was 2X the 8.5% increase of the MSCI AC World Index.

Asia’s economic expansion saw, on average, a new billionaire created in the region every other day.

Should the pace continue, Asia would overtake the US as the world’s largest concentration of wealth in 4 years, the Swiss bank and the auditing firm said in an analysis of data from roughly 1,550 billionaires.

Rise of China

“As China hooks up its capital markets to the global system, it will have a very profound impact on capital flows on Europe as well,” he said.

The execution of Chinese President Xi’s growth policies will also influence how fast total Asian billionaire wealth overtakes the US, he said.

A combination of geopolitical stability in Greater China, rising Chinese real estate prices, infrastructure spending, the growing middle class and buoyant commodity prices all boosted wealth, the UBS report said, citing interviews with Asia’s richest people.

75% of the world’s new billionaires hail from China and India.

The number of Asia billionaires rose by 117 for a total of 637, with self-made billionaires seeing their wealth rise faster than those who became rich through family ties.

The US added 25 billionaires for a total of 563.

“In China, one billionaire is created every three weeks,” Qiong Zhang, head of wealth management for UBS Securities in China, said in an interview. “For many of the first generation of entrepreneurs, a major focus is bringing the business to the capital markets, raising funds and M&A,” she said, adding that the Swiss bank sees Greater China as a “crucial” wealth management market.

Europe’s number was basically flat at 342 in part due to death and because “entrepreneurial companies can find Europe a difficult place to do business due to both the conservative business culture and strict regulations,” UBS said.

The world’s 500 richest people have added $824-B so far this year, an increase of 19%, according to the Billionaires Index. Their total net worth is estimated at $5.2-T as of 25 October.

Peer networks are playing an increasingly important role for billionaires when it comes to making and giving away money, the survey said.

“Informal and formal networks orchestrate deals and investments, as well as helping with other topics such as philanthropy, inheritance and art,” according to the report.

In fact, the emergence of great wealth is bolstering art and sports more than ever before. As art prices have skyrocketed since early 2000’s, more billionaires have turned to art both as a status symbol and an asset.

Among the world’s Top 200 art collectors, almost 75% were billionaires in Y 2016.

A Japanese billionaire, Yusaku Maezawa, was the buyer of this year’s most expensive artwork at auction, a painting by Jean-Michel Basquiat for $110.5-M.

More than 140 top sports clubs around the world are owned by 109 billionaires, who are on average 68 years old with a wealth of $5-B, according to the survey.

Billionaires are a Key target segment for UBS, the world’s largest wealth manager, as the bank expects the wealth of ultra-high-net-worth individuals to grow faster than the world average. In addition to publishing the annual billionaires report, the Swiss bank has been building out a chief investment office specifically for its wealthiest clients.

Stay tuned…

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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