5.2 million ‘Affluent Families’ withn CNY 6 million of wealth, up 2.1%

2.11 million ‘High Net Worth Families’ with CNY 10mn of wealth, up 2.5%

138,000 ‘Ultra High Net Worth Families’ with CNY 100mn of wealth, up 3.5%

Total wealth of Affluent Families in China grew 2.5% to CNY 164tn, of which CNY 67tn or 40% investable wealth of over CNY 6 million

Over next 10 years, Affluent Families in China will pass on CNY 19tn of wealth to the next generation, CNY51tn over 20 years, and CNY 98tn over 30 years

Hurun Research Institute, a leading authority on research into wealth creation, releases the Hurun China Wealth Report for the 14^th consecutive year

(10 March 2023, Qingdao, Shandong Province, China) The Hurun Research Institute today, in association with wealth management platform Yi Tsai, released the Yi Tsai · Hurun China Wealth Report 2022, a comprehensive report into the number of wealthy families in China. The report focused on four wealth levels: affluent, high net worth, ultra high net worth and international ultra high worth families, looking into both their total as well as investable wealth, spread across all provinces in China and 76 cities. The report includes the results of a survey into their investing needs and habits. This is the 14^th year of the Hurun China Wealth Report.

The Yi Tsai · Hurun China Wealth Report 2022 analyses both ‘Total Wealth’ and ‘Investable Assets’. ‘Total Wealth’ is a measure of confidence, and includes a family’s main residence and unlisted family-owned business, as well as investable assets. ‘Investable Assets’ is of particular interest to financial service providers and includes liquid assets such as equities, funds and cash, and less liquid investments such as investable properties.

Definitions. ‘Affluent Households’ are defined as families with CNY 6mn (equivalent to US$0.9mn) of family wealth; ‘High Net Worth Households’ are families with CNY 10mn (equivalent to US$1.4mn) of family wealth; ‘Ultra High Net Worth Households’ are families with CNY 100mn (equivalent to US$14mn) of family wealth; and ‘International Ultra High Net Worth Households’ are families with US$30mn of family wealth.

2021 was a transitional year for economic recovery, and China's economic growth was generally strong. The resurgence of the Covid-19 pandemic, coupled with the complex and volatile geopolitical situation, has brought new shocks to the recovering economy and unprecedented challenges to many wealthy families. Despite the multiple uncertainties, China's wealth groups have shown strong resilience in their demand for asset preservation and appreciation, which also provides wealth management institutions with broad opportunities.

Yi Tsai · Hurun China Wealth Report 2022 continues to track the changing trend of investment philosophy, demand and behavior of China's wealthy, and focuses on the current situation and demand of fund investment of the wealthy. Under the influence of COVID-19 combined with macro environmental factors, at the present stage, the wealth group is more inclined to pay attention to the safety and liquidity of assets, pay attention to diversification of asset allocation, and take joint actions with trustworthy wealth management partners to actively cope with risks and challenges.

It is noteworthy that in the field of non-financial services, the report explores the emerging trends and feasible directions of multidimensional derivative services for financial institutions around the Chinese wealth group ecosystem. As the leader of innovative lifestyle, the wealth group pays more and more attention to knowledge integration, interest investment, physical and mental health management, etc., and related derivative services are increasingly popular.

Rupert Hoogewerf, chairman and chief researcher of Hurun Report, said: “The Yi Tsai Hurun China Wealth Report is a comprehensive analysis of wealth by city and province in China. Hurun breaks down the number of wealthy families into four levels of wealth, across 100 geographical regions in China. We look into both total wealth, which is a measure of their confidence and especially relevant for brands and services selling to them, and investable wealth, which looks at their investment ability and is of particular relevance to financial services providers.”

“The number of affluent households in China rose by 100,000, or 2%, in 2021, led by Shanghai, Beijing, Guangdong and Zhejiang, which accounted for 60% of the total increase. The main reason, on the one hand, is the real estate market, especially in first-tier cities. On the other hand, the domestic stock market has also boosted the number of affluent households.”

“The Top 30 cities with the highest concentration of affluent households in China account for 68% of total affluent households. Beijing topped the list, while other northern cities in the Top 30 included Tianjin, Dalian, Qingdao, Xuzhou and Shenyang. At present, the cities with the largest concentration of High Net Worth Households in China present a "3+2+2" pattern, with the Top 3 being Beijing, Shanghai and Hong Kong, followed by Shenzhen and Guangzhou, and then Hangzhou and Ningbo.”

“I am delighted to put out the Hurun China Wealth Report with leading Qingdao-based wealth management platform Yi Tsai for the second year running. This report is targeted at brands and service providers with products and services for wealthy Chinese families.”

This is a brief English language summary of the full Chinese press release which can be found at www.hurun.net. For media inquiries please contact our public relations team whose contact details can be found at the end of this report.

Size of Market

As of 1 January 2022, the number of affluent families in China with CNY 6 million of total wealth increased by 2.1% to 5.18 million households. Of these, 1.86 million families had investable assets of CNY 6 million.

The number of high net worth families in China with CNY 10 million of total wealth increased by 2.5% or 50,000 households to 2.11 million households. Of these, 1.11 million families had investable assets of CNY 10 million.

The number of ultra high net worth families in China with CNY 100 million of total wealth increased by 3.5% or 4,600 households to 138,000 households. Of these, 82,000 families had investable assets of CNY 100 million.

The number of international ultra high net worth families in China with the equivalent of US$30mn of total wealth increased by 4.1% or 3,600 to 92,000 households. Of these, 58,000 families had investable assets of the equivalent of US$30mn.

Except Hong Kong, Macao and Taiwan, the number of affluent families in mainland China with CNY 6 million of total wealth increased by 2.2% to 4.16 million households. Of these, 1.5 million families had investable assets of CNY 6 million.

The number of high net worth families in mainland China with CNY 10 million of total wealth increased by 2.6% or 50,000 households to 1.71 million households. Of these, 907,000 families had investable assets of CNY 10 million.

The number of ultra high net worth families in mainland China with CNY 100 million of total wealth increased by 3.6% or 4,000 households to 116,000 households. Of these, 69,000 families had investable assets of CNY 100 million.

The number of international ultra high net worth families in mainland China with the equivalent of US$30mn of total wealth increased by 4.3% or 3,200 to 77,000 households. Of these, 49,000 families had investable assets of the equivalent of US$30mn.

Geographical Distribution of Affluent Households, High Net Worth Households, Ultra High Net Worth Households & International Ultra High Net Worth Households in China

About Yi Tsai

Yi Tsai is a part of the Italy-based Intesa Sanpaolo Group, which ranked 332, up 117 places, on the 2021 Hurun Global 500, a ranking of the world’s most valuable companies.

Yi Tsai (Qingdao Yicai Fund Distribution Co. Ltd) is a distribution company founded in China in 2016.

Yi Tsai offers across-the-board financial advice for long-term product portfolio to high-net-worth individuals, through a network of financial advisors.

The company is wholly owned by Intesa Sanpaolo, the leading banking group in Italy in all business areas and one of the top banking groups in the euro zone. The parent group has a proven track record in wealth management, being the top financial partner in Italy’s private banking sector.

Yi Tsai operates as a multi-product and multi-brand company. It is the synergy of three important business areas of Intesa Sanpaolo – the International Subsidiary Banks Division, Private Banking Division and Asset Management Division – that enables Yi Tsai to act in such a way.

Yi Tsai translates as “Italian talent” and by it we think of the passion we put into developing tailor-made financial solutions to meet your most individual needs – and the trusting relationship we aim to develop over time. Proud of our Italian roots, we’re also firmly settled in the Chinese market, where we prepare your pathway to wealth.

About Hurun Inc.

Promoting Entrepreneurship Through Lists and Research

Oxford, Shanghai, Mumbai, Sydney, Paris

Established in the UK in 1999, Hurun is a research, media and investments group, promoting entrepreneurship through its lists and research. Widely regarded as an opinion-leader in the world of business, Hurun generated 6 billion views on the Hurun brand last year, mainly in China and India.

Best-known today for the Hurun Rich Index series, telling the stories of the world’s successful entrepreneurs in China, India and the world, Hurun’s two other key series include the Hurun Start-up series and the Hurun 500 series, a ranking of the world’s most valuable companies.

The Hurun Start-up series begins with the Hurun U30s, an awards recognizing the most successful entrepreneurs under the age of thirty, and is today in seven countries. Next up are Hurun Cheetahs, Chinese and Indian start-ups with a valuation of between US$300mn to US$500mn, most likely to go unicorn with five years.  Hurun Global Gazelles recognize start-ups with a valuation of US$500mn to US$1bn, most likely to go unicorn within three years. The culmination of the start-up series is the Hurun Global Unicorn Index.

Other lists include the Hurun Philanthropy Index, ranking the biggest philanthropists, the Hurun Art Index, ranking the world’s most successful artists alive today, etc…

Hurun provides research reports co-branded with some of the world’s leading financial institutions, real estate developers and regional governments.

Hurun hosted high-profile events in the last couple of years across China and India, as well as London, Paris, New York, LA, Sydney, Luxembourg, Istanbul, Dubai and Singapore.

For further information, see www.hurun.net.

For media inquiries, please contact:

Hurun Report

Porsha Pan

Tel: +86-21-50105808*601

Mobile: +86-139 1838 7446

Email: porsha.pan@hurun.net

Grace Liu

Tel: +86-21-50105808

Mobile: +86 136 7195 4611

Email: grace.liu@hurun.net