China’s Shenzhen metropolis sees fastest growth in millionaires globally

🌈 Abstract

The article discusses the rapid growth in the number of millionaires in Shenzhen, China, over the past decade, outpacing other major Chinese cities.

🙋 Q&A

[01] Shenzhen's Millionaire Growth

1. What is the key finding about Shenzhen's millionaire growth?

• Shenzhen recorded 140% growth in millionaire count over the past decade, far exceeding the growth in other major Chinese cities like Beijing (90%) and Shanghai (84%).
• In 2023 alone, Shenzhen saw a 10% growth in millionaires, while Beijing and Shanghai recorded a decline of around 5% amid an exodus of high-net-worth individuals from China.

2. What are the main drivers of Shenzhen's millionaire growth?

• The bulk of the surge in millionaires in Shenzhen is due to new business and organic income growth within the city.
• About 30% of the growth is owed to an influx of millionaires from cities such as Beijing, Shanghai, and Hong Kong.

3. How does Shenzhen's economic performance compare to other Chinese cities?

• Shenzhen's economy expanded 6% in 2023, surpassing growth in Beijing and Shanghai.
• Shenzhen is expected to continue growing "very strongly" all through to 2040, compared to Beijing and Shanghai, which are likely to see moderate growth.

[02] Factors Behind Shenzhen's Progress

1. What factors have contributed to Shenzhen's success in minting millionaires?

• Shenzhen's relatively light-touch governance and welcoming attitude towards migrants, compared to other Tier-1 cities in China.
• Shenzhen's corporate landscape is dominated by private-sector entrepreneurs, unlike Shanghai which derives its economic might from state-owned enterprises.
• Shenzhen's pro-business and pro-innovation regulatory environment has forged wave after wave of self-made fortunes.
• Shenzhen's proximity to Hong Kong, which is business-friendly and efficient, has helped the city learn how to develop its economy.

2. What is the key factor that will determine Shenzhen's ability to continue minting millionaires?

• Shenzhen's ability to maintain a conducive environment for its biggest resource: entrepreneurs.