Hong Kong Is Now Top City For Ultra-Rich People, It’s No Longer New York

Hong Kong
Hong Kong is now the home for the individuals with net worth of $30 million and more. New York used to hold the number one spot in the ranking made by the research firm Wealth-X. (Photo: Pixabay)

Hong Kong is now the home for the world's ultra-high-net-worth individuals worth $30 million and more. The number of the ultra-rich people living in the city increased by almost a third in 2017 to 10,000 individuals according to the research firm Wealth-X.

The report noted that the rise in the number of ultra-wealthy people in the city is driven by its booming stock market and its financial ties with China. It found that China's rapid economic growth in the past decades make more people in Hong Kong qualified to be considered ultra-high-net-worth individuals.

The report highlighted that Chinese millionaires or billionaires do not put their wealth in one area alone but instead distribute it to various investments and ventures across the country, including Hong Kong.

The report outlined that the United States, overall, remained the most preferred country of the world's most affluent. In fact, the country is home to a third of the people who qualified to be ultra-high-net-worth individuals.

The report, however, stressed that the Asian region is rapidly catching up and the majority of that push is coming from China - as in this case where Hong Kong superseded New York as the most favorite city of the ultra-rich people. New York used to hold the number one spot since Wealth-X started ranking cities in 2011.

The number of ultra-rich individuals all over Asia increases to 20 percent in 2017 and Wealth-X is expecting the region to close the gap with the United States over the next five years. The growth in the region is driven by the increasing purchasing power of the people and numerous infrastructure and economic reforms.

On a worldwide scale, Wealth-X predicts that the ultra-high-net-worth population will rise to 360,390 by 2022, an increase of nearly 105,000 from the numbers in 2017. Last year alone, the number rose by 13 percent to more than 250,000. The combined total wealth of these individuals can reach as much as $31.5 trillion.

In its research, Wealth-X factored in main political and market drivers, asset allocations of the ultra-wealthy, the sources of their money, and their philanthropic interests.

The report also found that 13.7 percent or 35,000 of the ultra-high-net-worth population are women which mean that female millionaires or billionaires bring in an annual growth rate of 31 percent.

These ultra-high-net-worth people are interested in education as their top philanthropic mission. The overall charitable donations related to education comprised 32.4 percent. Many of them are also interested in social service and health missions.

Other cities in the top ranking are Tokyo, Los Angeles, Paris, and London.

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