CHINA-ECONOMY: AS WEALTH EXPANDS IN CHINA "COMMON PROSPERITY" IS BEING TOUTED AS A MEANS TO REDUCE INEQUALITY

Reuters (February 16) cited a report (February 16) by the Swiss Bank, UBS (UBSG.S), which said China's drive for "common prosperity" to ease inequality could be a positive catalyst for the local wealth management industry, as it leads to expansion of the middle-income group and healthy development of capital markets. The UBS also said the wealth management market in China could hit 214 trillion yuan ($34 trillion) in investable assets by high net worth individuals in 2030. Stating that the "Common prosperity" policy drive by President Xi Jinping has sparked some concerns as Beijing the UBS report said concerns about policy uncertainties amid Beijing's "aim to 'reasonably regulate and adjust excessively high income'" could boost demand for geographic diversification and offshore asset allocation by high net worth individuals. Reuters mentioned that the number of high net worth individuals in China has jumped from 0.3 million in 2008 to 2.6 million in 2020, adding the growth was still the primary driver for the rise in overall investable assets.





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