China and India were among the key emerging markets to spearhead the continued rise in Asia-Pacific’s High Net Worth Individual (HNWI) population and wealth in 2014, according to the Asia-Pacific Wealth Report 2015 (APWR), published today by Capgemini and RBC Wealth Management.
Overall, Asia-Pacific saw its HNWI population grow 8.5% in 2014 to 4.7 million people – one million more than just two years ago – while wealth increased 11.4% to US$15.8 trillion, leading all regions globally.
“Asia-Pacific continues its tremendous run in wealth creation and doesn’t appear to be slowing down anytime soon,” said Barend Janssens, head, RBC Wealth Management - Asia. “Despite some recent economic issues, the region’s wealth is expected to lead global growth and with this, will provide tremendous opportunities for the wealth management firms that are well positioned to meet the increasingly complex needs of HNWIs in Asia- Pacific.”
Asia-Pacific has already surpassed North America with the largest HNWI population (4.69 million versus 4.68 million), according to the recent World Wealth Report 2015, and is expected to overtake North America’s leading US$16.2 trillion in HNWI wealth by the end of the year.
Looking further ahead, HNWI wealth is expected to expand more in Asia-Pacific than in any other region of the world with much of the new wealth expected to come from the emerging economies of China, India, Indonesia, and Thailand. China and India, in particular, have propelled Asia-Pacific HNWI wealth growth in recent years and are expected to continue to act as key drivers, both in the region and globally. China and India represent nearly 10% of global HNWI wealth, and account for 17% of the global increase in new wealth since 2006, adding US$3.2 trillion during that time.
In 2014 alone, China saw its HNWI population grow by 17.5% to 890,000, while the HNWI wealth rose 19.3% to US$4.5 trillion. India, meanwhile, recorded the largest percentage point gains – in the region and globally – in HNWI population (26.3% to 198,000) and wealth (28.2% to US$785 billion).
HNWI wealth in Mature Asia, which includes Japan, Australia, New Zealand, Singapore, Hong Kong, Taiwan, Malaysia, and South Korea, grew by 7.0 percent in 2014, and is expected to grow at a rate of 8.9 percent through 2017 to reach US$12 trillion in wealth.
Singapore grew its HNWI population and wealth at low rates of 2.2% and 3.9%, respectively, whereas Hong Kong grew its HNWI population and wealth at strong rates of 11.2% and 13.1%, respectively.
The report also found that Asia-Pacific’s ultra-HNWIs – those with more than US$30 million in investable assets accounted for less than 1% of the region’s millionaires in 2014, but generated over one quarter of the wealth.
