China on track to overtake Japan in household wealth: Credit Suisse
Growth in assets held by mainland's middle class set to push country into second spot behind US by 2017, report says
China could overtake Japan as the second-wealthiest country in the world by household assets in five years on the back of a booming middle class and rapid growth in ultra-high-net-worth individuals, according to Credit Suisse Group.
The Swiss bank defines household wealth as financial assets plus real assets, such as property, owned by households, minus debt.
China, the world's second-largest economy, is expected to add US$18 trillion in household wealth by 2017, bringing the country's total to US$38 trillion, according to Credit Suisse's third annual global wealth report. That would surpass Japan's US$35 trillion, but be less than half the expected wealth of US$89 trillion in the US by 2017.
"If we look at the very top end of the wealth pyramid, in terms of billionaires and ultra-high-net-worth individuals, China is expected to have a higher number of these high wealth holders than Japan," said Fan Cheuk-wan, the head of Asia-Pacific research for Credit Suisse's private bank.
Fan said that Japan was still expected to have more millionaires compared with China in five years, with estimated figures reaching 5.4 million in 2017 for Japan and 1.9 million for China.
