High-net-worth individuals in China are now more confident than before about the country's economic prospects for the next two years, a new study said.
According to the Hurun Chinese Luxury Consumers Survey 2018 released on Wednesday, 46 percent of the 463 Chinese respondents with a personal wealth of at least 10 million yuan (.6 million) said they remained "very confident" about economic growth prospects, compared with 28 percent in the previous year.
The Shanghai-based Hurun Research Institute, which conducted the study, said that only 6 percent of the respondents were pessimistic on prospects, while that number was 9 percent a year ago.
Rupert Hoogewerf, founder and chief researcher of Hurun, said that although China's GDP growth rate was 6.9 percent last year, which is slightly up from the 6.5 percent estimated by the central government at the beginning of 2017, it is enough to make a difference.
As a result, 72 percent of the respondents－up from 65 percent last year－expected that China and the United States will run neck and neck in terms of economic development in the next decade. About 37 percent said that China is likely to overtake the US in 10 years, which is up from 28 percent a year ago.
It is the 14th consecutive year that Hurun has released this list. About 58 percent of the surveyed high-net-worth individuals this year, who have not immigrated yet, expressed no such plans, a historic low since 2011. In addition, overseas investment dropped out from the top five personal investment channels. As explained by Hoogewerf, it reflects the rich individuals diverse interests in the domestic market.
Liquor band Kweichow Moutai is the only Chinese brand that figures in the top 10 favorite brands for gifting. According to Hoogewerf, wealthy individuals' preference of brands for gifting has consolidated over time, which means that they are extremely loyal to certain brands and will not opt for a substitute easily even if the new products are a hit in the market.
In terms of recreation and activities, sailing took the second spot among the activities that Chinese high net worth individuals want to try in the next three years, next to equestrianism.
To achieve financial freedom in the first-tier cities in China, the threshold is 130 million yuan this year. That number comes in at 80 million yuan in second-tier cities and 60 million yuan in third-tier cities.