An ounce of patience is worth a pound of brains. – Dutch Proverb
Our Asian edge Index and trend indicator clearly stated back in 2005, that China would lead the way in economic growth and eventually overtake the US in many areas. China now boasts the World’s Largest Middle Class, and it is growing much faster than our middle class.
According to Credit Suisse, 109 million Chinese have savings that ranges from $50,000 to $500,000. The momentum gained traction in 2000; since that time, China’s Middle Class has grown at twice the U.S rate. To avoid changes such as unemployment, Credit Suisse measured wealth rather than income. Hence, these numbers are quite shocking when you consider that the average worker in the U.S does not even have $5,000 in savings. Makes you wonder which country is 3rd world and which one is 1st world.
China accounts for a fifth of the World Population but accounts for 10% of the Global Wealth. In the years to come the pace will continue to increase, eventually propelling China to the number one place.
China has the World’s second most Millionaires and is creating them at a faster rate than the U.S. Currently, China has more than one million millionaires. However, China now has the most billionaires in the world, and this means it’s just a matter of time before they have the most millionaires too.
China added a stunning 242 billionaires in 2015, and if it maintains that pace, it could create even more this year. China now has 596 billionaires, overtaking the U.S, which has 537 billionaires, to take the top spot.
The Chinese are extremely adept at hiding their resources so that the actual billionaire count could be two or three times higher.
“Think of it like an iceberg, the tip of it is much smaller than the whole … We do our best to find [hidden money], but they go to such extraordinary lengths to hide it,” lamented Rupert Hoogewerf.
The number of millionaires in China is projected to surge by over 70% and could top 2.3 million by 2020. A stunning new report from UBS and PricewaterhouseCoopers established that one new billionaire is being created every week. If that is not stunning then we don’t know what is; note that this is all going on during a supposedly strong recession.
