China’s newly-wealthy people have after-tax monthly income of about 18,000 yuan (US$2,529.72), a new survey shows, and 94% of them have properties, The Paper reported.
They prefer traditional investments, such as bank deposits and real estate investment, according to the China Rising Affluent Financial Well-Being Index, released by the Shanghai Advanced Institute of Finance and global financial service provider Charles Schwab.
Their average after-tax monthly income is 18,281 yuan nationwide, with 19,667 yuan in first-tier cities, 16,960 yuan in second-tier cities and 15,722 yuan in third-tier cities.
The findings are based on a survey of 3,800 respondents with annual income of 125,000 yuan — 1 million yuan and investable assets of no more than 7 million yuan. These respondents came from China’s four first-tier cities, six second-tier cities and five third-tier cities.
Given increasing uncertainties in the global market, newly wealthy people make savings as one way to fend off risks, in a bid to help them maintain their confidence, the report said.
Nearly 90% of respondents said they regularly make deposits, and 55% of income will be used for savings and investment.
Meanwhile, 94% of respondents said they have properties. The figure is 93% in first-tier cities, 95% in second-tier cities and 98% in third-tier cities.
This year, the proportion of property investment also rose to 33% from 20% in 2017. About 45% said they plan to increase their property investment.
Furthermore, newly wealthy people in first-tier cities pay more attention to investing for their children’s education, even those with lower income.
The survey showed that in first- and second-tier cities, children’s education is the most important financial goal, while in third-tier cities, it ranked fourth.
Newly wealthy people think education decides a family’s future financial condition. Some people improved their social status through education. Now, they hope their children will maintain or enhance their social status through high-level education.