26 Oct, 2018
This is something nobody ever wants to hear… the rich just keep getting richer. On Friday a study released by UBS and PwC revealed that the wealth of the world's billionaires increased 20% in 2017 to $8.9 trillion!
China’s rich are leading the uptrend by adding 2 new billionaires per week in 2017. This rate is double America's and Europe's rate while Asia in total are seeing 3 people crossing the $1 billion net worth mark per week.
12 years ago there were only 16 billionaires in China and that has increase over 22 times to 373 billionaires.
In 2017, the total female billionaires have also grew to 2,158 which is up 9% from 2016’s 1,979 but they still only represent 11%. Although only a small part of the overall total their rise can bring a shift in wealth creation which will be key to demographic growth.
UBS’s Josef Stadler, revealed that in China there were more female billionaires created through entrepreneurship while Europe and the US female billionaires inherited their wealth and then lead into entrepreneurship. He also mentioned the difference between the way men and women billionaires distribute the wealth
"They are the same when it comes to creating value, but different when it comes to distributing the value," Stadler told CNBC's "Squawk Box Europe" on Friday. "Women tend to foster family values and want to invest more into the sustainability area, whereas males are more value creators and leave it then to their females or to their officers and family officers or foundation officers to basically give back to society."
Chinese billionaires now account for almost 20% of the world's billionaires. China’s leadership in technological innovations brings competition to the US. Tech has been a huge wealth creation motivator for China who is home to 3 of the largest tech corporations Baidu, Alibaba and Tencent. The country also has a number of rapidly-growing startups with multi-billion dollar valuations, including ride-hailing firm Didi Chuxing and artificial intelligence company SenseTime.
Something you might like to know is that 97% of Chinese billionaires are self-made! The report showed 89 entrepreneur billionaires were produced alone last year which is 3 times more than the U.S., Europe,Middle East and Africa (EMEA) region.