Number of multi-millionaires soars despite pandemic

The number of self-reported multi-millionaires in Hong Kong reached a record high of 515,000 in 2020 – up nearly a quarter from the year before, despite the economic impact of the Covid-19 pandemic.

Citibank, which conducted the survey, defines a multi-millionaire as an individual with net assets of HK$10 million and liquid assets of HK$1 million. The multi-millionaire figure of 515,000 equates to about 1 in 12 of the city’s adult population.

“Although Covid is here, most governments released liquidity and action to help the economy and the financial market,” explained Josephine Lee, head of retail banking for Citibank Hong Kong.

“As such, the multi-millionaires gained some profits from the equity, the FX markets, or the fixed-income market,” Lee said. “We can see a well-diversified portfolio is better to weather through the ups and downs.”

“We found that the affluent diversified their investment into different assets, and also globally, into stocks, FX, renminbi, mutual funds and bonds, and even property, to address their personalised financial needs,” she added.

Lee said there were slightly more male than female multi-millionaires, with an average age of 60 for male multi-millionaires and 61 for females. Eastern district on Hong Kong Island had the highest density of multimillionaires among the SAR’s 18 districts.

Citibank’s random telephone survey of 4,043 adults aged 21 to 79, was conducted between November 2020 and January 2021.

The survey found that the median net asset value of multi-millionaires in 2020 was HK$15.5 million – slightly lower than the HK$17 million in 2019.

Looking ahead, Lee said they foresee a better economic recovery in 2021, with manageable inflation and lower unemployment rates. She said they were also positive about mainland stocks and the Hong Kong market.