China's richest man says wealth gap not a priority
POSTED: 17 Jul 2013 7:00 PM
China's yawning divide between rich and poor does not need to be tackled, the country's richest person said Wednesday -- as long as everyone can become wealthy.
BEIJING: China's yawning divide between rich and poor does not need to be tackled, the country's richest person said Wednesday -- as long as everyone can become wealthy.
"We don't need to solve the problem of the rich-poor gap, we need to solve the problem of common prosperity," said Zong Qinghou, whose family fortune is estimated at $12.6 billion.
Zong, founder of a huge soft-drinks conglomerate which has branched out into baby milk and children's clothing, said that "rich people should help everyone to become prosperous".
"If everyone is wealthy, society will be harmonious, and more comfortable," the 67-year old entrepreneur told reporters in Beijing at an event to mark the launch of a series of high-end shopping malls.
Zong only went into business in his 40s, selling fizzy drinks to children and reportedly being so short of cash that he slept under a bridge in Beijing because he could not afford a hotel.
But the company he launched, Wahaha, whose name means "Laughing Child" in Chinese, went on to become China's third largest soft drinks company, according to Euromonitor International.
Zong's fortune, as estimated by China-based luxury magazine publisher the Hurun Report, makes him the richest person in China and one of the wealthiest in Asia.
China's rich have become targets for public resentment as the gap between the country's richest and poorest grew following market reforms beginning in the late 1970s.
China's Gini coefficient, a measure of inequality with 0 representing total equality and 1 representing total inequality, stood at 0.47 in 2012, according to government statistics. That would put it close to the US, which had an index figure of 0.56 in 2009, according to the World Bank.
But a study last year by the Survey and Research Center for China Household Finance, a government-backed research group, said the figure was 0.61 in 2010. That would put China at the top of a list of 16 countries issued by the World Bank.
Nonetheless, Zong warned: "If we had egalitarianism... we wouldn't have enough to eat."
He called for lower taxes to stimulate investment. "It's best to encourage people to create wealth," he said.
- AFP/nd
- wong chee tat :)
Showing posts with label global wealth. Show all posts
Showing posts with label global wealth. Show all posts
Wednesday, July 17, 2013
Thursday, December 13, 2012
财富不断增加 促使中国人对奢侈品趋之若鹜
Updated: Wednesday, 12 December 2012 18:25
财富不断增加 促使中国人对奢侈品趋之若鹜
财富不断增加，促使中国人对奢侈品趋之若鹜。
全球管理咨询公司麦肯锡的调查显示，到了2015年，中国将占全球奢侈品市场的三分之一，相当于1千750亿美元。
中国人购买的奢侈品包括：名牌服饰、皮包、珠宝等。
另一份针对中国14个城市1千多家奢侈品购物场所进行的调查也显示，中国人今年的奢侈品消费已经占全球奢侈品市场的百分之27，约相等于1千450亿美元。
调查报告指出，中国消费者的奢侈品花费，已经超越其他国家，成为奢侈品行业发展的动力。
报告也说，中国的经济增长步伐放缓，加上政府严厉打击腐败行为，影响了当地的送礼习俗， 导致今年的奢侈品需求稍微下降。不过，不断扩大的富有中产阶级，将带动奢侈品行业的未来发展。
- wong chee tat :)
财富不断增加 促使中国人对奢侈品趋之若鹜
财富不断增加，促使中国人对奢侈品趋之若鹜。
全球管理咨询公司麦肯锡的调查显示，到了2015年，中国将占全球奢侈品市场的三分之一，相当于1千750亿美元。
中国人购买的奢侈品包括：名牌服饰、皮包、珠宝等。
另一份针对中国14个城市1千多家奢侈品购物场所进行的调查也显示，中国人今年的奢侈品消费已经占全球奢侈品市场的百分之27，约相等于1千450亿美元。
调查报告指出，中国消费者的奢侈品花费，已经超越其他国家，成为奢侈品行业发展的动力。
报告也说，中国的经济增长步伐放缓，加上政府严厉打击腐败行为，影响了当地的送礼习俗， 导致今年的奢侈品需求稍微下降。不过，不断扩大的富有中产阶级，将带动奢侈品行业的未来发展。
- wong chee tat :)
Tuesday, December 11, 2012
Low-interest environment driving investors to seek higher yields
Low-interest environment driving investors to seek higher yields
By Thomas Cho | Posted: 10 December 2012 1959 hrs
SINGAPORE: The low-interest environment is driving investors to seek higher returns as global economic conditions improve.
Flushed with liquidity from major central banks' monetary easing, most analysts agreed that there is little upside left on safe assets like sovereign government debts.
Instead, analysts are seeing more investors investing in high yield bonds often classified as distressed that offer returns of over 6 percent per annum.
With the US Presidential election and China's leadership change out of the way, Asian investors are working up an appetite for riskier assets.
But this time, they are putting their money in fixed income products instead of Asian equities, which offer far better returns than bonds.
Thailand and Philippines stock indices have showed a over 30 percent return so far this year, while, bigger market like Hong Kong's Hang Seng Index gained some over 20 percent.
Schroder Investment Management's head of Asian Fixed Income, Rajeev De Mello, said: "Interest rates are going to remain close to zero. So for a lot of investors who need returns, they don't have too much choice -- it is either they buy bonds or buy equities.
"But for many types of investors, equities may be just too riskier and they may need a more predictable revenue stream."
In recent months, Asia has seen a growing number of corporate debt issues, which are oversubscribed.
Some investors are even drawn to beaten-down corporate bonds.
CreditSights' senior credit analyst, Sandra Chow, said: "In the past couple of weeks, we've seen a big shift into the high yield sector. A lot of bonds which was previously traded at double-digit yield are now coming to single-digit or even lower yields."
The credit quality of corporate bonds may not be improving, but analysts said bond funds face growing pressure from clients to deliver better-than-market returns of 9 to 10 percent.
Apart from market liquidity, French bank, Credit Agricole says wealthy individuals in Asia are also on the lookout for steady returns for their growing wealth.
Based on an estimated rate of growth 8 percent a year, China alone is expected to generate some US$560 billion of net new wealth every year.
- CNA/lp
- wong chee tat :)
By Thomas Cho | Posted: 10 December 2012 1959 hrs
SINGAPORE: The low-interest environment is driving investors to seek higher returns as global economic conditions improve.
Flushed with liquidity from major central banks' monetary easing, most analysts agreed that there is little upside left on safe assets like sovereign government debts.
Instead, analysts are seeing more investors investing in high yield bonds often classified as distressed that offer returns of over 6 percent per annum.
With the US Presidential election and China's leadership change out of the way, Asian investors are working up an appetite for riskier assets.
But this time, they are putting their money in fixed income products instead of Asian equities, which offer far better returns than bonds.
Thailand and Philippines stock indices have showed a over 30 percent return so far this year, while, bigger market like Hong Kong's Hang Seng Index gained some over 20 percent.
Schroder Investment Management's head of Asian Fixed Income, Rajeev De Mello, said: "Interest rates are going to remain close to zero. So for a lot of investors who need returns, they don't have too much choice -- it is either they buy bonds or buy equities.
"But for many types of investors, equities may be just too riskier and they may need a more predictable revenue stream."
In recent months, Asia has seen a growing number of corporate debt issues, which are oversubscribed.
Some investors are even drawn to beaten-down corporate bonds.
CreditSights' senior credit analyst, Sandra Chow, said: "In the past couple of weeks, we've seen a big shift into the high yield sector. A lot of bonds which was previously traded at double-digit yield are now coming to single-digit or even lower yields."
The credit quality of corporate bonds may not be improving, but analysts said bond funds face growing pressure from clients to deliver better-than-market returns of 9 to 10 percent.
Apart from market liquidity, French bank, Credit Agricole says wealthy individuals in Asia are also on the lookout for steady returns for their growing wealth.
Based on an estimated rate of growth 8 percent a year, China alone is expected to generate some US$560 billion of net new wealth every year.
- CNA/lp
- wong chee tat :)
Tuesday, October 16, 2012
One in six Australian kids living in poverty: report
One in six Australian kids living in poverty: report
Posted: 15 October 2012 1841 hrs
SYDNEY: Child poverty in Australia is increasing despite the nation's booming mining wealth, a welfare group said Monday, with new data showing one in six children are now living below the poverty line.
The Australian Council of Social Service (ACOSS) said that children, particularly in single parent families, were among the groups in society most at risk of poverty.
About 17.3 percent of all children in Australia were estimated to be living below the internationally accepted poverty line used to measure financial hardship in wealthy countries, according to ACOSS -- up from 12 percent in 2005.
That compares with 23.1 percent in the United States, 14.9 percent in Japan and 12.1 percent in Britain, according to United Nations data published in May, which had estimated Australia's child poverty rate at 10.9 percent.
Drawing the poverty line at incomes of 50 percent or less than the median income in the country, the ACOSS report found that as at 2010, one in eight people were surviving at that level of income or below.
"For a single person that works out to be about A$18,000 (US$18,390) a year to cover all of your costs, including housing," ACOSS chief executive Cassandra Goldie said.
"And most disturbingly we've got one in six children who are living in that circumstance."
About 12.8 percent of the population of Australia, which dodged recession during the global financial crisis and boasts economic growth of 3.7 percent and low unemployment, is affected by poverty, the report found.
Goldie said those particularly at risk of sinking into poverty were those on unemployment and other benefits which have not kept pace with the cost of living.
"Whilst the overall community levels of income have been improving over time, people on those low fixed incomes have been seriously left behind," she said.
- AFP/al
- wong chee tat :)
Posted: 15 October 2012 1841 hrs
SYDNEY: Child poverty in Australia is increasing despite the nation's booming mining wealth, a welfare group said Monday, with new data showing one in six children are now living below the poverty line.
The Australian Council of Social Service (ACOSS) said that children, particularly in single parent families, were among the groups in society most at risk of poverty.
About 17.3 percent of all children in Australia were estimated to be living below the internationally accepted poverty line used to measure financial hardship in wealthy countries, according to ACOSS -- up from 12 percent in 2005.
That compares with 23.1 percent in the United States, 14.9 percent in Japan and 12.1 percent in Britain, according to United Nations data published in May, which had estimated Australia's child poverty rate at 10.9 percent.
Drawing the poverty line at incomes of 50 percent or less than the median income in the country, the ACOSS report found that as at 2010, one in eight people were surviving at that level of income or below.
"For a single person that works out to be about A$18,000 (US$18,390) a year to cover all of your costs, including housing," ACOSS chief executive Cassandra Goldie said.
"And most disturbingly we've got one in six children who are living in that circumstance."
About 12.8 percent of the population of Australia, which dodged recession during the global financial crisis and boasts economic growth of 3.7 percent and low unemployment, is affected by poverty, the report found.
Goldie said those particularly at risk of sinking into poverty were those on unemployment and other benefits which have not kept pace with the cost of living.
"Whilst the overall community levels of income have been improving over time, people on those low fixed incomes have been seriously left behind," she said.
- AFP/al
- wong chee tat :)
Saturday, October 9, 2010
Personal wealth in Asia Pac grows much faster than global average
Personal wealth in Asia Pac grows much faster than global average
By Travis Teo | Posted: 08 October 2010 2344 hrs
By Travis Teo | Posted: 08 October 2010 2344 hrs
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SINGAPORE : Personal wealth in Asia Pacific has grown at a much faster rate compared to the global average.
Wealth in the region grew between 100 and 400 per cent in the last 10 years, compared to the average global rate of 42 per cent, according to the first Global Wealth Report by Credit Suisse released on Friday.
The Credit Suisse report aims to provide insight for investors going into different markets, using a methodology which calculates total wealth by looking at fixed assets and bankable assets, including properties, equities and cash.
Asia Pacific markets have been bullish since recovering from the recent financial crisis. And Credit Suisse says the region's strong economy has led to rising income levels, which means a wealthier population.
Joseph Tan, director & Asian chief economist, Credit Suisse, said: "On a much longer-term structural basis, one key reason why Asian growth ... (is) leading to Asian wealth accumulation is because the demographics are highly favourable for Asia - we have a lot more younger people out here in Asia."
China is one of the countries with the fastest growth in personal wealth. Credit Suisse expects the country to double its current household wealth of US$16.5 trillion by 2015, surpassing Japan's household wealth.
Going forward, total global wealth is projected to grow by 61 per cent to hit an accumulated US$315 trillion by 2015.
Credit Suisse said its wealth report is the first to look at a complete wealth band in each country, ranging from ultra-high net worth individuals to those with wealth below US$10,000.
It is different from other established reports like the Merrill Lynch and Capgemini's report, which analyses only high net worth individuals.
Tee Fong Seng, vice chairman, Private Banking, Asia Pacific, Credit Suisse, said: "Our wealth report focuses holistically from the very bottom wealth bracket all the way to the top.
"We want to see the evolution of the total wealth pattern that prevails in each country to give us a better feel, also for those that use our report."
Within Asia Pacific, Australians are the richest - with an average wealth per individual of nearly US$321,000. This is followed by Singaporeans, with some US$255,000 in individual wealth.
These are the only two Asia Pacific countries that made it to the top 10 list in the study.
- CNA/al
- wong chee tat :)
Sunday, June 13, 2010
Asia-Pacific drives global wealth growth: study
SINGAPORE, June 12, 2010 (AFP) – Wealth in Asia-Pacific grew faster
than in other regions around the world in 2009, according to a new global study.
The region, excluding Japan, added 22 percent, or 3.1 trillion dollars, to its coffers from the end of 2007, a study conducted by US-based business advisory firm Boston Consulting Group (BCG) stated.
"That was nearly double the global rate," the report, released on Friday, said.
Latin American wealth grew second-fastest, registering a 16 percent rise.
The Asia-Pacific region's pace of wealth growth trumped North America, which had the largest global absolute increase in wealth at 4.6 trillion dollars representing a 15 percent growth.
Wealth is also tipped to to grow in Asia-Pacific at a faster rate than its global counterparts in the next four years, said BCG partner Tjun Tang.
"We expect Asia-Pacific, excluding Japan, to grow at nearly twice the global rate, raising its share of global wealth from 15 percent in 2009 to almost 20 percent in 2014," Tang, a co-author of the report, said.
Globally, wealth increased by 11.5 percent to 111.5 trillion dollars, just short of the year-end peak reached in 2007, with BCG projecting global wealth to grow at an average annual rate of nearly six percent to 2014.
North America accounted for about 40 percent of the increase in global wealth in 2009, reaching 35.1 trillion dollars last year.
The number of millionaire households worldwide also rose almost 14 percent to 11.2 million, with Asia-Pacific countries Singapore and Malaysia leading the pack, BCG said.
"Singapore saw the highest growth in millionaire households, up 35 percent, followed by 33 percent for Malaysia, 32 percent for Slovakia, and 31 percent for China," the report stated.
"In Singapore and Hong Kong, millionaire households accounted for 11.4 percent and 8.8 percent, respectively, of all households."
- wong chee tat :)
The region, excluding Japan, added 22 percent, or 3.1 trillion dollars, to its coffers from the end of 2007, a study conducted by US-based business advisory firm Boston Consulting Group (BCG) stated.
"That was nearly double the global rate," the report, released on Friday, said.
Latin American wealth grew second-fastest, registering a 16 percent rise.
The Asia-Pacific region's pace of wealth growth trumped North America, which had the largest global absolute increase in wealth at 4.6 trillion dollars representing a 15 percent growth.
Wealth is also tipped to to grow in Asia-Pacific at a faster rate than its global counterparts in the next four years, said BCG partner Tjun Tang.
"We expect Asia-Pacific, excluding Japan, to grow at nearly twice the global rate, raising its share of global wealth from 15 percent in 2009 to almost 20 percent in 2014," Tang, a co-author of the report, said.
Globally, wealth increased by 11.5 percent to 111.5 trillion dollars, just short of the year-end peak reached in 2007, with BCG projecting global wealth to grow at an average annual rate of nearly six percent to 2014.
North America accounted for about 40 percent of the increase in global wealth in 2009, reaching 35.1 trillion dollars last year.
The number of millionaire households worldwide also rose almost 14 percent to 11.2 million, with Asia-Pacific countries Singapore and Malaysia leading the pack, BCG said.
"Singapore saw the highest growth in millionaire households, up 35 percent, followed by 33 percent for Malaysia, 32 percent for Slovakia, and 31 percent for China," the report stated.
"In Singapore and Hong Kong, millionaire households accounted for 11.4 percent and 8.8 percent, respectively, of all households."
- wong chee tat :)
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