Chinese Luxury Consumers
Chinese Millionaires (aka “Super Rich”) are defined as an individual with a net worth over $15 Million... up two percent. Private Business Owners and White (Golden) Collar workers make up 35% of the millionaires, while real estate and stock market investors make up another 15%. The city Tianjin currently has the fastest growing number of millionaires and 65% are influenced by word of mouth marketing.
So, what does it mean when the State Administration of Foreign Exchange (SAFE) who oversees the world’s largest collection of foreign-exchange holdings, opens up operations in Manhattan, New York? In my opinion the answer is quite clear and summed up with one word! “Diversification”, doesn't matter if you are a Billionaire or a Country, you must protect against volatility and determine a risk tolerance. Unlike their sister location that buys government debt, the goal here is to diversify away from U.S. debt. Hence, not putting all their Eggs in one basket!
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