The past decade has witnessed a staggering increase in the number of centimillionaires worldwide, with China at the forefront of this trend. According to a comprehensive study conducted by New World Wealth and Henley & Partners, the significant rise in ultra-high-net-worth individuals (UHNWIs) has transformed the landscape of global wealth distribution. Centimillionaires are defined as individuals with investable assets exceeding $100 million, and their populations surged by an impressive 54% from 2013 to 2023. This article delves deeper into the dynamics of wealth growth, the contributing factors behind these changes, and the future outlook for ultra-wealthy populations.
Remarkably, China’s centimillionaire population skyrocketed by 108% over the past decade. This pivotal growth is largely attributed to the entrepreneurial spirit spawned within its tech sector, alongside burgeoning industries and corporations that have produced several industrial magnates. Currently, there are about 2,350 centimillionaires residing in China, a number that stands out significantly within the global frame. However, underlying this ascent is a paradox: while the number of extremely wealthy individuals rose impressively, the broader Chinese economy has encountered stagnation marked by issues in the property sector and persistent unemployment. Illustrative of this is the report’s assertion that growth among centimillionaires in China was explosive primarily between 2013 and 2020, with a much more modest increase in numbers seen since.
The acceleration of wealth creation in China predominantly hinged on the success of its technology giants. As these tech-centric centimillionaires emerged, cities like Hangzhou and Shenzhen became vital in shaping this economic landscape. Despite the recent economic headwinds, these cities have exhibited robust growth rates. For instance, Hangzhou’s GDP grew by 6.9% in the first half of 2024, outperforming the national average, while Shenzhen recorded a 5.9% growth, bolstered by its industrial sector.
In tandem with China, the United States has also enjoyed a substantial elevation in its centimillionaire demographic, witnessing an increase of 81% over the same timeframe. Leading cities such as New York, Los Angeles, and the San Francisco Bay Area continue to be magnetizing forces for wealth, with projections indicating that their ultra-rich populations could grow by over 50%. The comparative ease of wealth accumulation in the U.S. is as much a reflection of its favorable economic policies as it is of the country’s innovation landscape.
However, this growth could face challenges depending on the outcome of the upcoming presidential elections. Competing fiscal and monetary policies might influence the migration patterns and overall growth of this high-net-worth segment. As noted by experts, affluent Americans have begun exploring alternative residence and citizenship options, a movement that emphasizes the significance of governance and economic policy in wealth management strategies.
While the explosive growth of centimillionaires is primarily noted in China and the U.S., emerging markets across Asia and the Middle East are anticipated to thrive as well. Cities like Taipei, Dubai, and Abu Dhabi are expected to witness centimillionaire populations soar by at least 150% by 2040. This reflects a wider trend of wealth migration towards emerging economic hubs that offer favorable conditions for entrepreneurial growth.
Conversely, traditional wealth centers like Zurich, Chicago, and Madrid may struggle to match the growth trajectories seen in emerging hubs, with estimates suggesting growth rates below 50%. The sluggishness in established European markets can be partially attributed to slow economic expansions in major economies such as Germany, France, and the UK. However, smaller markets within Europe, including Monaco and Malta, have recorded impressive growth rates of over 75%, suggesting that not all corners of Europe are stagnant in their wealth accumulation.
The trajectory of centimillionaires in the coming years will largely depend on geopolitical landscapes, as well as economic and social policy evolutions around the world. While the U.S. and China appear poised to lead global wealth growth, the continued rise of emerging markets suggests a shifting paradigm in how wealth is concentrated and distributed.
This ongoing transformation in the global distribution of wealth poses important questions about inequality, investment opportunities, and the very fabric of global economies. As regions compete for a greater share of the ultra-wealthy demographic, the implications of such wealth concentration will reverberate through economies at large, prompting responses at individual, corporate, and governmental levels. As the world braces for the complexities ahead, one thing remains clear: the aspirations and potentials of centimillionaires are intricately interlinked with the stability and prosperity of their economic environments.