In this report, ‘High Net Worth Individuals’ (HNWIs) refers to people with assets of more than 6m RMB, ‘super-rich Chinese’ is defined as individuals with assets of more than 100m RMB and ‘the richest ’ is the top 10% among HNWIs. Their wealth includes both physical assets, such as owner-occupied
real estate, investment properties, and financial assets, such as stocks, funds, bonds, savings and insurances.
● By the end of 2013, the number of HNWIs in China increased 100,000 to 2.9m with 60,000 new inductees living in Beijing, Shanghai, Guangzhou and the number of super-rich Chinese increased 2,500 to 67,000.
● Overall spiritual satisfaction level of HNWIs scores 75 points (out of 100), whilst the richest shows an even higher degrees of satisfaction.
● Healthcare, tourism and education are the three major domains in HNWIs’ spiritual investments, followed by social responsibilities (including philanthropy, environmental protection and tax payments), insurances and religious beliefs.
● Top 3 hobbies of HNWIs are fine cuisine, travel and sports, the men are more likely to be attracted by sports and philanthropy than the women, and the richest shows greater interest in fashion, philanthropy and wine tasting.
● Health satisfaction level scores 79 points (out of 100); healthy diet and exercise are the HNWIs’ main methods of managing health.
● The HNWIs exercise 3 hours per week on average, running is the most popular, followed by badminton and swimming.
● 80% of the HNWIs get a health checkup every year, only 14% of the HNWIs get one every half a year, while the richest doubles that ratio (28%).
● In 2013, more than half of the HNWIs traveled abroad at least once, spending an average of 64,000 RMB.
● 70% of HNWIs seek to improve themselves by taking part in training courses and 80% by reading, on average they spend 10 hours on reading every week while the richest spends 15.
● Only 10% of HNWIs have no plans to send their children to study abroad.
● HNWIs care more about environmental protection than philanthropy in terms of social responsibility, 87% are dissatisfied with smog issue.
● Microblog (Chinese version of Twitter) and WeChat have increased the effectiveness of the spread and opinion leading of philanthropy. Young HNWIs are more focused on getting all the social forces behind the charities.
● Though there is a declining trend in choosing public charities for donation, it is still favored by 60% of the HNWIs. With the rapid development of non-governmental charity organizations, nearly 50% choose to sponsor their causes.. More than 1/3 make contributions directly to the people in need.
● 3/4 of HNWIs purchase insurances for themselves and their family members, with an average annual premium of 13,000 RMB.
● The report is based on the results of a survey of 1019 HNWIs, half of them are from second and third tier cities.
On May 27 2014, the Industrial Bank and Hurun Research Institute jointly issued the China Spiritual Investments White Paper 2014 in Shanghai. This is the third collaboration between Hurun Report and Industrial Bank after the publications of Chinese Luxury Consumer White Paper in 2012 and China Passion Investments White Paper in 2013.
Spiritual Investment refers to the kind of investment that brings inner growth and fulfillment, where rather than direct financial benefits are gained, spiritual richness and blessedness are more focused, and it usually involves areas such as social responsibilities, education, health, insurances and tourism. The data and the analytic results in this 60 pages professional report are from surveys completed by 1019 HNWIs from 31 provinces and municipalities around the country.
In 2013, the Chinese economy experienced a steady growth with GDP increasing at 7.7% from the previous year. Although the HNWIs’ total number seems to slow down in its growth, the number of the super-rich have been growing at a faster rate. At the end of year 2013, Chinese HNWIs have increased by3.6% (100,000) to 2,900,000 people, in it, the super-rich increased by 4% (2,500) to 67,000.
The Hurun Research Institute also predicts that the total number of HNWIs in China could reach 3,350,000 within three years.
The General Manager of Industrial Bank Private Banking Department, Mr. Xue Ruifeng, claimed, ‘as China's the first and only Equator Bank and a member of Alxa Zoology Association, Industrial Bank will devote itself in the fulfillment of social responsibilities and the development of green finances. They are both important spiritual investment vehicles of HNWIs and the focus of private banking. The understanding of the spiritual investments will prospectively benefit us in providing more comprehensive and all-dimensional services to clients, and in doing so, also promote healthy and sustainable development for our private banking services.’
The Hurun Report Chairman and Chief Researcher, Rupert Hoogewrf, said, ‘the psychological balance of the entrepreneurs helps them to endure more pressures. I'm pleased to have the third opportunity to work with Industrial Bank, one of the top 50 global banks and the first and only bank adopting equator principles in China, in researching the topic concerned by HNWIs.’
Regional Distribution of HNWIs
Analysis of the regional distribution of HNWIs shows that Eastern China still accounts for the highest proportion, at 44%, with Northern China in second place at 23%, and southern China in third at 18%. The North-Eastern, South-Western, Central, and North-Western China combined only account for 15%.
Of all China’s provinces and municipalities, Beijing still has the highest total number of HNWIs with 490,000, an increase of 15,000 since the previous year, followed by Guangdong Province in second place with 486,000, an increase of 17,000, Shanghai is in third place with 420,000, an increase of 30,000, Zhejiang Province is in fourth with 380,000, an increase of 4,900. These four areas together have 1.776m HNWIs, accounting for 61% of the national total. Beside these four places, the ten regions with more than 50,000 HNWIs also includes Jiangsu, Shandong, Fujian, Liaoning, Sichuan and Tianjin. The number of HNWIs rises in all other provinces except Inner Mongolia, Liaoning and Jilin.
The Number and Distribution of HNWIs (Top 10)
| Rank | Region | HNWIs | National Share | Year on Year Increase |
| 1 | Beijing | 490,000 | 16.9% | 15,000 |
| 2 | Guangdong | 486,000 | 16.8% | 17,000 |
| 3 | Shanghai | 420,000 | 14.5% | 30,000 |
| 4 | Zhejiang | 379,900 | 13.1% | 4,900 |
| 5 | Jiangsu | 216,000 | 7.5% | 8,000 |
| 6 | Shandong | 111,000 | 3.8% | 6,000 |
| 7 | Fujian | 109,000 | 3.8% | 2,000 |
| 8 | Liaoning | 79,000 | 2.7% | -1,000 |
| 9 | Sichuan | 71,300 | 2.5% | 2,800 |
| 10 | Tianjin | 51,400 | 1.8% | 3,900 |
| Other | 486,400 | 16.8% | ||
| Total | 2,900,000 | 100% | 3.6% |
Source: Hunrun Research Institute
Healthcare, tourism and education are the three major domains of spiritual investments of HNWIs
Overall spiritual satisfaction level rated 75 points (out of 100), while the richest reported an even higher level of satisfaction.
Major spiritual investments were made in healthcare, tourism and education, followed by social responsibilities (philanthropy, environmental protection and tax payments), insurance, and religious faith. Females HNWIs favor education more while males show a higher interest in religion. The need for holding beliefs elevates with the increasing of age and accumulations of wealth.30% of HNWIs have religious beliefs, in which 23% are Buddhist, 6% are Christian and the rest participate in other religions. It is worth mentioning that, 60% in the richest practice some forms of religion.
| Spiritual Investments Domains | % in favor | |
| 1 | Health | 88% |
| 2 | Tourism | 79% |
| 3 | Education | 66% |
| 4 | Social responsibilities (philanthropy, environmental protection, tax payments) | 53% |
| 5 | Insurance | 49% |
| 6 | Religious faith | 24% |
| 7 | Immigration | 17% |
Top 3 hobbies among the HNWIs are fine cuisine, travel and sports, and males show greater interests in sports and charity than females. The richest have more extensive interests, favoring fashion, charity and wine tasting.
| Hobbies of HNWIs | % in favor | |
| 1 | Fine Food | 76% |
| 2 | Travel | 73% |
| 3 | Sports | 65% |
| 4 | Family activities | 60% |
| 5 | Games | 47% |
| 6 | Fashion | 42% |
| 7 | Environmental protection | 31% |
| 8 | Art | 28% |
| 9 | SPA/ beauty salon | 27% |
| 10 | Charity | 20% |
| 11 | Wine tasting | 18% |
| 12 | Night life | 10% |
| 13 | Politics | 4% |
HNWIs rated their satisfaction towards their health at 79 (out of 100), healthy diet and exercise are the main methods of their health management. Running is the most popular sport, followed by badminton and swimming. The average exercise time is 3 hours per week. 14% of HNWIs have a health checkup every six months, while the proportion doubles among the richest.
The survey shows that HNWIs regard their health as being more important than travel, education and social responsibilities in terms of spiritual investments. Although the overall satisfaction level averaged at 79, the males generally rated higher than their female counterparts.
The main methods of health management are healthy diet and exercise, along with regular health checkup. Family doctor and health consultant are more attractive to females. Emerging health management methods presented by medical tourism, healthcare club and sheep placenta injection are gradually being accepted by HNWIs in recent years.
Healthy diet is maintained mainly through having regular meals while controlling its amount and the intakes of greasy food, and also managing a moderate consumption of spicy food and stop drinking.
Running is the most popular form of sports, followed by badminton and swimming, and no vast disparities are shown between males and females in this aspect. However, females are more inclined to yoga and horseback riding, and males tend to enjoy playing ball games more, for example basketball and football. The more wealthy the HNWIs are, the more likely they will be into golf and tennis. On average, HNWIs excise 3 times a week, one hour each. 17% exercise every day, 3/4 exercise at least once a week, with males owning a slightly higher frequency than the females.
80% have an annual health checkup, 14% have one every six months, while over 1/4 of the richest has one every half a year. Public hospitals are still their first choice, followed by privately owned domestic professional institutions. 40% of the richest favors foreign hospitals and institutions. The average annual cost on health check up is 1,500 RMB, with the men spending more than this, the older they are the more they spend; and the richest spend 3,500 RMB.
Over 50% of HNWIs have traveled abroad at least once last year, spending 64,000 RMB on average.
Tourism is the second largest domain of spiritual investments. According to Hurun Best of the Best Brand Preference Report 2014, Sanya, Hong Kong and Tibet are chosen by HNWIs with wealth of over 10m RMB to be the top three domestic travel destinations, while Australia, France and Dubai being the overseas ones. Places like North and South Pole, Kenya and other parts of Africa rise to become hot spots among high-end outbound travel destinations in recent years.
The HNWIs traveled 4 times (including 1 business trip) on average last year, with 3 domestic travels and 1 oversea trip. 1/4 of all HNWIs traveled more than 5 times, over half traveled abroad at least 1 time last year, but less than 20% had traveled overseas for more than 3 times. Often they travel with 1 or 2 family members.
Over 50% of HNWIs will choose to travel on non-holidays. Summer vacation, National Day and Spring Festival are popular choices if they travel during the holidays for domestic trip, and often they will travel overseas during summer vacation and Spring Festival. The choices of destinations vary with the kinds of holiday, when National Day, Beijing will be the first choice, while Sanya and Australia would have more visitors in Spring Festival.
The cities visited frequently by HNWIs are Hong Kong, Shanghai, Beijing, Sanya and Hangzhou last year. In addition to business schedule and sightseeing, they visit Hong Kong also for purpose of shopping, investment tour and education, whilst Shanghai and Beijing is mostly for business.
Japan, the United States and South Korea are most chosen destinations for overseas travel, followed by Thailand, Singapore, Germany and Australia. As an increasing number of HNWIs go shopping in South Korea, the South Korea Tourism Board announced in November 2013 that China will become the largest customer source country which had been Japan for quite a long time, featuring an increasing trend towards the mid to high-end consumption level.
Travel agent and website are the major ways for journey reservation. Whether it’s on a domestic or overseas travel, most people will choose economy class flight, while self-driving is also a much favored second choice for domestic travels, and business class flight for overseas travel.
Last year, HNWIs spent 23 days on average traveling, with males making longer trips than females. 4 days was the average staying length for a domestic travel, except for places like Xinjiang, Tibet and Yunnan province where it usually took more than 7 days and for an overseas trip ,the average days for staying was 7 to 8.
Men also spent more on tourism than women. The average domestic travel expenses of HNWIs reached 35,000 RMB (excluding shopping), and that of the richest were 43,000 RMB, while in overseas trips, the average cost was 64,000 RMB and 110,000 RMB respectively.
High-end customized tour, theme tour and in-depth tour are the trend of tourism investment of HNWIs. Over 20% of HNWIs and 60% of the richest will choose service providing personalized high-end travel.
70% seek to improve themselves by taking part in training courses while reading is viewed as the best way to self-improvement by over 80% of HNWIs.
On average, the HNWIs read 10 hours a week, while the richest read 15 hours a week.
Only 10% HNWIs have no plans to send their children to study abroad.
Education is the third largest domain of spiritual investments which can be divided into two parts: self-education and children’s education.
Reading (81%) is the most widely acknowledged way of self-improvement, with news and finance being the favorite reading subjects, followed by history, professional course, science and technology. Taking part in training programmes (70%) ranks the second, especially professional training courses among the HNWIs with personal assets of 10m to 30m RMB; 1/4 of all HNWIs, especially the females, are willing to take training lessons based on their interests; 10% will choose MBA/EMBA programme, with a higher proportion among people over 30. Exhibition, conference and lecture are gradually being recognized by the HNWIs, particularly among the men.
HNWIs tend to choose to read online rather than physical books. The widespread WeChat is considered a social communication tool and not a reading plaform. On average, HNWIs read 10 hours each week, and the richest read 15 hours. The reading time seems to increase along with the increase in the amount of assets.
30% of HNWIs have plans to send their children to study abroad, only 10% is unwilling to do so, the other 60% are postponing the decision waiting on the self-development of their children. Among HNWIs with wealth of over 10m RMB, it is up to 70% of them who have plans to send their children to study abroad.
Among the HNWIs who have plans to send their children abroad, 40% will send them abroad during senior high school, 40% during college. The wealthier the family is, the younger the children will be sent abroad.
1/4 of HNWIs choose the United Kingdom while over 50% of HNWIs choose to send their children to the United States and that number is still growing every year. When choosing the destination, 3/4 take positive and safe social environment into consideration, 60% require the country has multiple elite schools to choose from and for the rest 40%, moderate expenses and good climate will be fine.
Education becomes one of the main purposes for immigration, 66% of HNWIs emigrated for their children’s education.
HNWIs believe that environmental protection embodies more social responsibilities than supporting charity, and 87% are not happy with the smog in China.
Social responsibility is the fourth largest domain of spiritual investments. Meanwhile, respectively, 20% and 31% of HNWIs regard charity and environmental protection as a hobby in which males are more charity-oriented while females are more environmentally conscious. 13% of HNWIs consider philanthropist as a boastful status symbol.
The best way considered by 38% of HNWIs to take social responsibilities is to pay taxes. With deteriorated environment, more and more feel environmental protection better embodies social responsibilities with its proportion rise from 17% to 33%, surpassing charity moving into the second place. The confidence crisis against charitable institutions lessens the recognition of charity being social responsible. But there are still a fair number of HNWIs take philanthropy as a hobby, especially among the men.
More than 90% of HNWIs carry out charitable activities by donating money, with the average annual contribution being 30,000 RMB, the men are more generous, whose average annual contribution is 36,000 RMB, and 40% of whom donate more than 50,000 RMB each year.
Over 50% donate goods, 1/3 choose to participate in charitable activities personally, while among female HNWIs, the number is nearly 70% and 50% respectively. At the same time, in recent years, the spread of MicroBlog, WeChat and other self-media improved the dissemination and guidance of philanthropy, young HNWIs attach more attentions to calling for social forces to support charitable enterprises.
Though there’s a declining trend to to donate to public charities, there are still nearly 60% of HNWIs willing to use this channel. With the rapid development of non-governmental charitable organizations, almost half of HNWIs choose them for donations, while over 1/3 make their contributions directly to people in need, especially for young HNWIs, the number is 60% and 40% respectively. Over 80% regard ‘transparent operation’ and ‘good reputation’ as important criteria when choosing charitable organizations. Disaster aids, poverty reduction and education supports are the three major areas in charitable contributions among HNWIs.
Over 50% are not satisfied with the environmental situation in China and the most serious issue is smog, leaving 87% dissatisfied. Their concerns are evenly disbursed into equal portions with regards to other environment issues, such as garbage problem, toxic chemical pollution, global warming and freshwater resources issue.
HNWIs believe that environmental protection embodies more social responsibilities than supporting charity, and 87% are not happy with the smog in China.
Social responsibility is the fourth largest domain of spiritual investments. Meanwhile, respectively, 20% and 31% of HNWIs regard charity and environmental protection as a hobby in which males are more charity-oriented while females are more environmentally conscious. 13% of HNWIs consider philanthropist as a boastful status symbol.
The best way considered by 38% of HNWIs to take social responsibilities is to pay taxes. With deteriorated environment, more and more feel environmental protection better embodies social responsibilities with its proportion rise from 17% to 33%, surpassing charity moving into the second place. The confidence crisis against charitable institutions lessens the recognition of charity being social responsible. But there are still a fair number of HNWIs take philanthropy as a hobby, especially among the men.
More than 90% of HNWIs carry out charitable activities by donating money, with the average annual contribution being 30,000 RMB, the men are more generous, whose average annual contribution is 36,000 RMB, and 40% of whom donate more than 50,000 RMB each year.
Over 50% donate goods, 1/3 choose to participate in charitable activities personally, while among female HNWIs, the number is nearly 70% and 50% respectively. At the same time, in recent years, the spread of MicroBlog, WeChat and other self-media improved the dissemination and guidance of philanthropy, young HNWIs attach more attentions to calling for social forces to support charitable enterprises.
Though there’s a declining trend to to donate to public charities, there are still nearly 60% of HNWIs willing to use this channel. With the rapid development of non-governmental charitable organizations, almost half of HNWIs choose them for donations, while over 1/3 make their contributions directly to people in need, especially for young HNWIs, the number is 60% and 40% respectively. Over 80% regard ‘transparent operation’ and ‘good reputation’ as important criteria when choosing charitable organizations. Disaster aids, poverty reduction and education supports are the three major areas in charitable contributions among HNWIs.
Over 50% are not satisfied with the environmental situation in China and the most serious issue is smog, leaving 87% dissatisfied. Their concerns are evenly disbursed
into equal portions with regards to other environment issues, such as garbage problem, toxic chemical pollution, global warming and freshwater resources issue.
3/4 HNWIs have purchased insurances for themselves and their family members, with an average annual premium of 13,000 RMB
Insurance is the fifth domain of spiritual investments. In addition to the three compulsory insurances: Pension, Medical Insurance and Unemployment Insurance, 3/4 of HNWIs purchased other kinds of insurances for themselves and their family members, of which 90% are Chinese insurances and 6% are global insurances to safeguard property safety and reduce insurance transfer risks.
The annual premium is averaged at 13,000 RMB, 40% will spend more than 10,000 BMB. The average annual insurance costs for the richest is 22,000 RMB.
As for choosing the insurance products, health care insurance is the most popular, accounting for 72%, followed by accident insurance, accounting for 64%, and the pension, accounting for 48%. The more assets the people own, the more diversified the insurances they purchase, among which there is high proportion in guarantee insurance, accident insurance, participating insurance and property insurance.
Half of HNWIs have purchased insurance products from Ping An Insurance Company, followed by China Life Insurance and Pacific Insurance. The foreign insurance companiesoccupies only a small portion of the market, only American International Assurance has over 10%.
In purchasing insurance, over 40% take advices from the the same insurance brokers, 30% trust their friends while 1/4 will put their trust on the banking managers. For the insurance investments, bank is an important channel of not only information but also purchase, especially favored by the men and the older HNWIs.
Internet and insurance companies are the two main channels for information on purchasing insurance products, followed by friends’ recommendation, insurance brokers and banking counters.
Methodology：
The research findings of the ‘China HNWIs Spiritual Investments White Paper 2014’come from a special study among HNWIs in the Chinese mainland carried out by Industrial Bank and Hurun Report, and from the Hurun Best of the Best Awards and Hurun Report Chinese Luxury Consumer Survey 2014.
The study began in January and ended in February this year, carried out written survey in 31 provinces and municipalities around China, including Beijing (17.6%), Guangdong (16.8%), Shanghai (14.2%), Zhejiang (12.4%), Jiangsu (7.1%), Fujian (3.6%), Shandong (3.6%), Liaoning (2.7%), Sichuan (2.6%) and Henan (1.8%), receiving 1019 valid confirming survey forms from people having assets of over 6m RMB, 73% of which having assets between 6m to 10m, 18.6% having 10m to 30m, 5.5% worth 30m to 50m and 3% worth over 50m, and male to female ratio of 6:4. It also includes in-depth face to face interviews of 10 spiritual investments experts.
ABOUT THE INDUSTRIAL BANK
Industrial Bank is one of the first batch of share-holding commercial banks founded with the approval of the State Council (China’ cabinet) and the People’s Bank of China (China’s central bank). Headquartered in Fuzhou City, Fujian Province, it was officially listed on Shanghai Stock Exchange (Stock Code: 601166) on February 5, 2007 with total registered capital of RMB 19.052 billion. On 31th October 2008, the Industrial Bank made a public commitment to adopting the ‘Equator Principles’, becoming the first and the only Equator Bank in China, symbolizing its pre-eminence among China’s commercial bank in introducing an advanced international model, strengthening its management of environmental and societal risks, and promoting a scientific and sustainable model of development.
Since its founding in August 1988, the Industrial Bank has remained constant to its management concept of ‘Sincere Service, Growing Together’ and has strived to provide its customers with comprehensive, outstanding, and highly efficient financial services. By the end of March 2014,Industrial Bank has opened 101 branches(including HK Branch)and built up correspondent relationships with more than 1000 banks globally, becoming a modern financial group based on banking business along with other financial services range of trusts, leasing, funds and asset management. In the latest list of the world’s thousand top banks issued by the British magazine Banker, Industrial Banks is ranked number 50 in terms of its total assets, and in Forbes Magazine’s list of world’s top 2000 companies, it is ranked number 129.The bank also received a number of important awards from other authoritative organizations, including ‘2013 Best Asian Bank in Shareholder Returns’, ‘Annual Share-Holding Commercial Bank’，’Best Social Responsibility Fulfillment Bank’, ‘ the Most Innovative Bank’ and ‘the Best Green Bank’.
ABOUT THE INDUSTRIAL BANK’S PRIVATE BANKING
IB Private Banking was established in April 2011. Headquartered in Shanghai, it is a top level department of the Industrial Bank’ head office. Its mission is to speed up the development of private banking business, to suit the needs of high-end clients, to grow its high-end client base, and to strive to establish its distinctive character and comparative advantage in China’s private banking sector. The IB Private Banking Department is striving to provide more professional, high quality, and highly efficient financial services, in order to satisfy clients’ requirement in a whole range of areas.
HURUN REPORT
Headquartered in Shanghai, Hurun Report is a leading luxury publishing and events group, comprising a magazine and active events business targeted at China’s high net worth individuals. It is widely recognized as a foremost authority in tracking, recording and impacting the changes within China’s entrepreneurs. Hurun Report is consisted by three parts: Hurun Research Institute, Media Group and Market Research. Founded in 1999, Hurun Report has made a list of 1000 Chinese billionaires in the China Rich List, the authority when it comes to rich listing and celebrity volume.In September 2013, Hurun Rich List has published its 15th achievements. Along with the List, Hurun Research Institute also makes a list of the top 100 generous Chinese billionaires in Hurun Philanthropy List, the top 100 Chinese artists in Hurun Art List according to the sales in open auctions this year and the Hurun Brand List in revealing the most popular luxury brands among Chinese tycoons as well as The Hurun Wealth Report publishing the population and regional distribution of the billionaires. Besides, the Hurun Report also releases Hurun Global Rich List and Hurun Global Richest Self-Made Women List.
Hurun media group owns four high end magazines: Hurun Report, Hurun Schools Guide, Horse& Polo China, Wings & Water and two new medium: iPad magazine and mobile phone magazine as well as a special planning department exclusive for high-end clients and high-income earners in business activities.
Now iPad Hurun Report magazine ranks the first in the Apple APP stores in the category of business and investment, being the first choice for HNWIs’ wealth and lifestyle guide.
In 2013, Hurun held 91 events including banquets, private receptions, high-end forums and exhibitions, press conferences and luxury workshops, mainly in China.Hurun Report has 2,187,959 monthly audiences in total, with 1,719,800 mobile terminal users, 343,533 magazine readers, 58,610 netizens, 35016 electronic mails users and 31,000 social networking participants.
Rupert Hoogewerf won Neweekly magazine's Prestigious “2002 Person of the Year” award. In 2009, the Shanghai government presented Rupert Hoogewerf with ‘the Magnolia Award’. In the next year, he was conferred ‘The Supporting Women’s Development Contribution Award’ by All China’s Women Federation.