The Hurun Institute’s “2021 Hurun Wealth Freedom Threshold” released on the 31st shows that the threshold of wealth freedom for entry level in China’s first-tier cities is 19 million yuan (RMB, same below, about $2.88 million) intermediate level 65 million yuan and senior level 190 million yuan. In addition, the number of wealthy households with RMB 6 million in assets exceeded 5 million for the first Time.
Land media reported that the report divided wealth freedom into four stages: entry-level, intermediate, advanced and international, and subdivided into three categories of cities in China’s first, second and third tier, with the threshold of wealth freedom mainly considering permanent housing, financial investment and annual household income after tax.
According to the report, the entry-level wealth freedom threshold in China’s first-tier cities is RMB 19 million, which mainly includes a 120-square-meter urban permanent Home, two cars, annual after-tax household income of RMB 600,000 and financial investments of RMB 8 million; the intermediate wealth freedom threshold is RMB 65 million, which mainly includes a 250-square-meter urban permanent home, a 200-square-meter suburban second home, two cars, an annual after-tax household income of RMB 1.5 million and financial investments of RMB 12 million.
The senior wealth freedom threshold is RMB 190 million, which mainly includes a 400-square-meter urban home, a 300-square-meter suburban second home, four cars, annual after-tax household income of RMB 6.5 million, and financial investments of RMB 65 million.
Hurun Report, Chairman and Chief Research Officer of Hurun Billion, said that China’s entry-level wealth freedom threshold is relatively high compared to other countries because of the high demand for home ownership. In addition, the reason for dividing the wealth freedom threshold into four stages is that at each threshold, changes in Family circumstances create new needs.
According to the 2020 Hurun Wealth Report, China expects RMB 17 trillion in wealth to be passed on to the next generation in 10 years, 42 trillion in 20 years, and 78 trillion in 30 years, split 50/50 between men and women.
According to Hurun, there should be a number of people who will be wealthy and free at birth, and these people are more fortunate. The elements included in family wealth are also not only family assets, family business and human capital, but also social capital, including social contacts and social influence.
He also said that most people in the world between the ages of 16 and 60 want to create wealth, have a home and no mortgage, do a job they love, and not give up their lives for five buckets of rice.
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