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People's Daily Online>>China Business

Why does HK see sharp decrease of billionaires?

By Wen Hui (People's Daily Overseas Edition)

09:55, March 06, 2012

Edited and translated by People's Daily Online

The number of rich population in Hong Kong with current assets more than one million yuan shrunk to 530,000 in 2011, 31,000 fewer than a year earlier, said a report released by Citigroup on Feb. 28

Affected by the European debt crisis and capital flight, Hang Seng Index jumped nearly 20 percent in 2011. The assets of Hong Kong citizens who invest in stock considerably shrank and the number of Hong Kong millionaires and their assets dropped accordingly.

This proved that Hong Kong's economy over-relied on its financial section and citizens cannot get rich without investment, which caused the number of millionaires as well as Hong Kong's economy always fluctuate greatly along with the ups and downs of the capital market.

As an international financial center, Hong Kong must develop and cultivate more new economic growth opportunities and promotes the diversification of its industrial structure while continuing to strengthen its financial sector. Its citizens can rank in the list of "millionaires" through the growth of the real economy and wage hikes, instead of only getting rich through investment.

All the time, the financial service sector has accounted for the major share of Hong Kong economy. Single industrial structure has polarized the people's incomes, and lowered the economic resistance against crisis. Moreover, citizen's capital appreciation is overly dependent on stock market rise. The results are definitely good when the external economy creates a good capital market prospect; but if the economy situation reverses suddenly, the asset bubbles burst, many millionaires will suffer great losses or even go bankruptcy, and the real economy will also be affected.

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CK at 2012-03-17124.82.96.*
Hong Kong, a one time perl of the Far Esat because the opportunity in Main land China had not open up yet. But today, the Hong Kong economy will see a slowly downturn because there is not muc thing to develpoe, at satutated point, even the Hong Kong people are limited by the facts that Hong Kong is too small now after China opened up the coastal cities. Opportunitise is far far more than Hong Kong, inluding living quatlity and spaciousness of living quarters. Lastly, many brainy rich tycoons abandoned Hong Kong and forgot where they made their money from, and did nothing to keep Hong Kong economy afloat by repatriation of thier profit made out side back to Hong Kong to sustain the Economy, somting like what the Sigaporeans are doing and helping Singapore back.

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