(29 July 2009, Shanghai) – Hurun Report, renowned for its annual ‘China Rich
List’, today released a report for the third year running analysing the spend
required to become a xinguizu or so-called upper class in China. Hurun Report
has valued the “cash on the table” required to pursue an upper-class lifestyle
in six cities of China, widely considered to be the most important for luxury
brands: Beijing, Shanghai, Hangzhou, Shenyang, Chengdu and Shenzhen.
The report was built up based on the spending required to join the so-called
upper class, based on the luxury lifestyle of a 43 year old husband, his 42 year
old wife and their child of 14 years. Hurun Research has split the spend into
four parts: money spent as a family, by the husband, by the wife and also by the
child. The husband is the biggest spender in the family.
“Luxury property has been the key driver for the improvement in lifestyle of
China’s elite,” says Rupert Hoogewerf, founder and publisher of Hurun Report, a
leading luxury business magazine in China. “Once they have their luxury property
they start putting much more effort into their lifestyle.”
China has 825,000 individuals with personal wealth of more than 10 million yuan
(GBP 1 million or USD 1.46 million) and 51,000 individuals with more than 100
million yuan, according to the Hurun Wealth Report 2009. One person in every
1700 in China has wealth of 10 million yuan. One person in every 25,000 has
wealth of 100 million yuan.
| Spend required to become so-called Chinese upper
class
|
| City |
Spend required US$m |
No. of Super Rich with personal wealth of 100m+ Yuan |
No. of Rich with personal wealth of 10m+ Yuan |
| Beijing |
12.7 |
8,800 |
143,000 |
| Shanghai |
12.3 |
7,000 |
116,000 |
| Hangzhou |
7.9 |
2,280 |
42,300 |
| Shenzhen |
6.5 |
2,760 |
40,600 |
| Chengdu |
5.5 |
650 |
12,200 |
| Shenyang |
4.8 |
450 |
6,900 |
Source: Hurun Wealth Report 2009
Half goes on Housing and Interior
Half of the total spend goes on housing, typically a suburban villa as well as a
luxury downtown apartment, both richly furnished with fine porcelain, jade and
artworks. In Shanghai, the entry-level price of a 400 sqm luxury villa is
US$3.2million and a 200 sqm luxury downtown apartment is US$1.4 million.
Beijing
The 2009 Hurun Report Rich List’s findings demonstrate, Beijing is home to
143,000 people with personal wealth of more than 10million yuan (GBP 1 million
or USD 1.46 million), along with 8,800 super-rich with over 100million yuan,
according to the Hurun Wealth Report 2009.
Shanghai
The 2009 Hurun Report Rich List’s findings demonstrate, Shanghai has 116,000
individuals with personal wealth of more than 10 million yuan (GBP 1 million or
USD 1.46 million) and 7,000 individuals with more than 100 million yuan,
according to the Hurun Wealth Report 2009.
Hangzhou
The 2009 Hurun Report Rich List’s findings demonstrate, Hangzhou is home to
42,300 people with personal wealth of more than 10 million yuan (GBP 1 million
or USD 1.46 million) and 2,280 individuals with more than 100 million yuan,
according to the Hurun Wealth Report 2009.
Chengdu
The 2009 Hurun Report Rich List’s findings demonstrate, Chengdu is home to
12,200 people with personal wealth of more than 10 million yuan (GBP 1 million
or USD 1.46 million) and 650 individuals with more than 100 million yuan,
according to the Hurun Wealth Report 2009.
It takes US$12k to send your child to the elite Guangya School, considered to be
one of the best private schools in Chengdu.
Shenyang
The 2009 Hurun Report Rich List’s findings demonstrate, Shenyang is home to
6,900 people with personal wealth of more than 10 million yuan (GBP 1 million or
USD 1.46 million) and 450 individuals with more than 100 million yuan, according
to the Hurun Wealth Report 2009..
A top of the range villa in Shenyang only costs US$1,317,000, but most Shenyang
xinguizu tend also to have a downtown flat because of the bad traffic. The
Shenyang xinguizu spends a disproportionate amount on gifts.
Shenzhen
The 2009 Hurun Report Rich List’s findings demonstrate, Shenzhen is home to
40,600 people with a fortune of 10 million yuan (GBP 1 million or USD 1.46
million) and 2,760 with over 100million yuan, according to the Hurun Wealth
Report 2009.
For many of Shenzhen’s elite, they carry out their shopping across the border in
Hong Kong.
Methodology
Items and brands chosen to make up the spend reflect those items that are
currently most in demand by the upper classes and were based on one-on-one
interviews with 100 Chinese individuals with over US$10 million of wealth. This
report assumes that the Chinese new aristocrat is a male, aged 43 with a family.
It measures the spend required to join the so-called new upper class of China
and excludes personal investments. Prices were based on retail prices as of 1
June 2009 and the exchange rate used was RMB 6.83 to US$1.
| Content Total Spend (US$) |
| Hurun Report New Aristocrat Consumption Threshold- Shanghai |
12,294,300 |
| Property |
| Shanghai Tomson Golf Villa (417㎡) |
3,220,000 |
| Apartment: Regency Lake Apartment, (140㎡) |
1,414,500 |
| Zeng Fanzhi Mask Series |
1,086,500 |
| Concert Grand D Steinway Concert Grand D piano |
214,500 |
| Da Vinci Leather Double Sofa |
48,500 |
| Da Vinci bed |
30,700 |
| |
| B&O, BeoSound 9000 Six Cd player |
7,000 |
| |
| Five koi carp & Waterstyle aquarium |
14,500 |
| |
| Kohler Portrait Massage Bath |
4,500 |
| |
| A set of Riedel wine glasses, red wine, dry white wine, whisky |
350 |
| |
| French Baccarat Chandelier |
| |
73,200 |
| |
| Miele Kitchen |
73,200 |
| |
| Cars |
| Porsche Cayenne |
256,000 |
| |
| BMW 750Li4.8 263,500 |
| |
| Clubs |
| Nine Dragon Hills Polo Club Membership Fee |
48,300 |
| |
| Yongfu Club Membership Fee |
4,400 |
| |
| Personal Finance |
| ABN AMRO Private Banking |
3,000,000 |
| |
| China Merchants Bank Private Banking |
439,000 |
| |
| Annual Spend |
497,300 |
| His Spending |
1,270,500 |
| |
| Her Spending |
307,550 |
| |
| Child’s Spending |
19,300 |
| Content Total Spend (US$) |
| Hurun Report New Aristocrat Consumption Threshold- Beijing |
12,739,900 |
| Property |
| Ziyu Shan Luxury Villa (400㎡) |
3,514,000 |
| |
| Apartment: No. 6 Gongyuan (129 ㎡) |
510,000 |
| |
| Courtyard: Near Houhai & Prince Gong’s Mansion |
2,020,500 |
| |
| Emperor Qianlong, Running Script, Mounted, Qing Dynasty(1780) |
18,000 |
| |
| Zheng Banqiao Orchid, bamboo & stone, Hanging scroll |
123,000 |
| |
| Li Keren, Landscapes of Yangshuo , horizontal mounted hanging scroll
(1963) |
623,000 |
| |
| Zhang Xiaogang Untitled, oil on canvas (2005) |
164,000 |
| |
| Steinway Concert Grand D Piano |
214,500 |
| |
| Tianlong Sofa |
58,000 |
| |
| Bamboo Carving of Plum Blossom, Mid-Qing Dynasty |
6,500 |
| |
| A Pair of Cloisonne Enamel Flasks, Qing Dynasty |
6,200 |
| |
| A Mahogany Table, Qing Dynasty |
3,000 |
| Sharp LCD-52RX1 TV |
3,200 |
| Cars |
| R500 Mercedes-Benz R500 |
143,500 |
| |
| Clubs |
| Changan Club |
22,000 |
| Personal Finance |
| |
| UBS Private Banking |
| |
3,000,000 |
| China Merchants Bank Private Banking |
732,000 |
| Annual household consumption |
94,500 |
| His Spending |
1,278,500 |
| |
| Her Spending |
182,000 |
| |
| Child’s Spending |
23,500 |
| Content Spend (US$) |
| Hurun Report New Aristocrat Consumption Threshold- Hangzhou |
7,860,500 |
| |
| Property |
| Greentown Jiuxi Rose Garden, 446㎡ |
3,807,000 |
| |
| Greentown Sapphire Mansion Apartment 200㎡ |
878,500 |
| |
| Custom Furniture Imports |
146,500 |
| |
| Cars |
| Rolls-Royce Phantom |
| |
1,036,500 |
| |
| Personal Finance |
| UBS Private Banking |
1,000,000 |
| Bank of China CitiGold Account |
| |
146,500 |
| Annual Spend |
177,000 |
| His Spending |
632,000 |
| Her Spending |
36,500 |
| Content Spend (US$) |
| Hurun Report New Aristocrat Consumption Threshold- Shenzhen |
6,540,400 |
| Property |
| Portofino town villa |
| |
2,196,000 |
| |
| Two Portofino Swan Castle Apartments |
878,500 |
| |
| Shuangyang Lake Villa |
439,000 |
| Italian Fendi Imported Italian Furniture |
| |
73,000 |
| B & O Beolab 8000 speakers |
| |
26,400 |
| Cars |
| BMW X5xDrive48i |
143,500 |
| Personal Finance |
| Bank of China Personal Finance |
439,000 |
| Standard Chartered Bank, private finance (USD) |
1,000,000 |
| Annual Spend |
284,000 |
| His Spending |
784,500 |
| Her Spending |
203,500 |
| Child’s Spending |
73,000 |
| Content Spend (US$) |
| Hurun Report New Aristocrat Consumption Threshold- Chengdu |
5,547,500 |
| |
| Property |
| Luxehills Villa |
2,489,000 |
| |
| Longfor Century View Apartment (200 ㎡) |
322,000 |
| Set of Custom-made Furniture |
117,000 |
| Cars |
| A6 Audi A6 |
124,500 |
| BMW X6 xDrive 50i |
260,500 |
| Personal Finance |
| Industrial and Commercial Bank of China financial payment account |
| |
440,000 |
| UBS Private Banking |
1,000,000 |
| Annual Spend |
114,000 |
| Her Spending |
451,500 |
| Child’s Spending |
229,000 |
| Content Spend (US$) |
| Hurun Report New Aristocrat Consumption Threshold- Shenyang |
4,800,655 |
| |
| Property |
| Vanke Rancho Santa Fe Villa (452㎡) |
1,318,000 |
| |
| Sun Flower Garden Apartment (240㎡) |
293,000 |
| Jade Collection |
| |
22,000 |
| Alexandria Furniture |
22,000 |
| Sony TV |
| |
6,000 |
| Subscriptions |
| One Year’s Subscription to Hurun Report |
55 |
| Cars |
| A8 Audi A8 |
187,500 |
| BMW Jeep |
| |
142,000 |
| Clubs |
| Sears Club, 6 times per year (4 people per time) |
5,100 |
| Personal Finance |
| HSBC Premier |
1,000,000 |
| Fortune Plaza China Merchants Bank |
1,464,000 |
| |
| Annual Spend |
96,000 |
| His Spending |
180,000 |
| Wife’s Spending |
65,000 |
