Missing Billionaires Attributed To Dwindling Financial Assets Around The World
The world's billionaires have appeared to have 'decided to go on vacation,' in relation to their dwindling numbers. The Real Deal reported that Wealth-X released a report on the status of the world's billionaires. According to the report, the global population of the elite has dropped down to 5.4 percent, or 2,604 in 2018 alone. Their collective net worth, meanwhile, is down to $8.6 trillion, or a 7 percent decline worldwide.
Billionaires in Asia had fueled the real estate market in New York and other cities, especially the ones from China. However, in 2018, the Wealth-X report found that they were among those who felt the biggest blow in 2018. The ranks of global billionaires were depleted, with 13 percent of billionaires off goof for 677. As for the Asian billionaires, their collective wealth dropped down to $2.2 trillion or 8 percent.
Maeen Shaban, director of research and data analytics for Wealth-X who was the co-author of the report, said that billionaires don't have protection against stock market crashes. She used China's billionaire decline as an example, where a 21 percent drop in the Shanghai stock market and an 18 percent drop in Beijing were greatly felt by these elites.
As tragic as the lack of billionaires might sound, some cities have it better than others in producing billionaires. As of 2018, according to Business insider, some of these billionaires were found in just 15 cities, accounting for 30% of the world's population of billionaires. This was published in the same report that was released by Wealth-X.
Of these cities, San Francisco, Hangzhou, and Shenzhen have stood out by themselves. These cities have become a haven for tech and, as such, wealth followed them--especially when the tech startups and their owners have decided to call these cities 'home.' This despite most of them had also received the backlash from negative movements in the markets.
Hangzhou and Shenzhen have received tech startups divided between them. Shenzhen is now home to about 26 tech companies, while Shenzhen had welcomed its status as a 'tech hub' in China. This contributed to the rise in wealth of some of its residents. San Francisco, meanwhile, is expected to have some of its startups organize an IPO, which is expected to bring more wealth.
While it appears that billionaires are alive and well in the world, there is still the fact that movements may contribute to their dwindling numbers. Movements in the economy and real estate, as well as in trading, may have a larger role to play in the declining numbers of global billionaires.