Archive for ‘Affluence’

25/02/2014

Property remains top wealth driver in China-Hurun list | Reuters

Real estate remained the most lucrative road to riches in China last year, according to the Hurun Global Rich List, despite Beijing’s repeated efforts to cool red-hot property prices.

A labourer works at a construction site in Beijing, January 20, 2014. REUTERS/Kim Kyung-Hoon

Six of world’s 10 top real estate tycoons are now from China and Hong Kong, according to Hurun Report Inc, which released its Global Rich list on Tuesday.

Hong Kong property tycoon Li Kai-shing claimed the top spot in the Greater China area with his fortune rising 3 percent to 200 billion yuan ($32.80 billion).

Wang Jianlin, chairman of China’s largest commercial property developer, Dalian Wanda Group, and Lui Che-Woo, founder of casino operator, Galaxy Entertainment Group Ltd (0027.HK), were the runners-up with personal wealth of 150 billion yuan ($24.60 billion) each.

Wang’s fortune doubled last year, while Lui’s wealth jumped 108 percent, the report said.

Wang bought UK luxury yacht maker Sunseeker for $1.6 billion and is planning billion-dollar luxury hotel developments in London and New York.

Home prices in many Chinese cities continued to set records last year despite a four-year government campaign to cool the housing market, official data showed.

via Property remains top wealth driver in China-Hurun list | Reuters.

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14/02/2014

Chinese luxury spending drops 19% during festival[1]- Chinadaily.com.cn

Chinese people spent $6.9 billion overseas on luxury goods during the Spring Festival holiday (Jan 31 – Feb 6), a drop of 18.8 percent from last year, according to World Luxury Association.

Austerity drive among factors taking toll on luxury market

Luxury outlets lure Chinese at Lunar New Year

And domestic sales of luxury goods were only $350 million, a 57.8-percent drop from 2013 and 80 percent drop from 2012.

The European area tops the destinations by receiving nearly $3.6 billion of total overseas spending during the festival.

Meanwhile the domestic luxury goods consumption also saw a sharp drop in five major cities (Beijing, Shanghai, Guangzhou, Shenzhen and Chonagqing), standing at $350 milion, down 57.8 percent from the same period of last year and 80 percent from 2012.

Insiders said the results were due to the Chinese central government‘s cracking down on corruption, which led to dramatic decrease in government-paid junkets and officials accepting gifts.

via Chinese luxury spending drops 19% during festival[1]- Chinadaily.com.cn.

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05/02/2014

China’s New Year market booms, luxury gift sales down – Xinhua | English.news.cn

China\’s consumer market boomed during the first days of the Lunar New Year holiday despite falling luxury gift sales, according to the Ministry of Commerce (MOC) on Wednesday.

In the first four days of the week-long Spring Festival holiday, the most important traditional holiday in China, consumer market sales expanded steadily and quickly, the MOC said in a statement on its website.

Without giving nationwide figures, the MOC said consumer market sales in the cities of Beijing and Chengdu had risen by 9.2 percent and 13 percent year on year respectively. According to the MOC, sales in Shaanxi, Anhui and Henan provinces grew by 14.3 percent, 11.2 percent and 10.4 percent respectively.

Online business and the catering, tourism and entertainment sectors have also prospered during the holiday, according to the MOC.

China\’s consumer market has boomed in spite of falling sales of luxury goods purchased as new year gifts, according to the MOC.

Sales of luxury gifts such as expensive alcoholic beverages and rare seafood, which are sometimes sent as gifts to officials during the holiday, have fallen sharply. Experts have viewed the drop as a direct result of the central government\’s anti-graft and frugality campaign.

via China’s New Year market booms, luxury gift sales down – Xinhua | English.news.cn.

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05/02/2014

Scooter boom: Young women find gusto on India’s roads | Reuters

\’Plush pink\’ and \’burgundy bliss\’ scooters are the new buzz on India\’s roads, even as the rest of the autos market is sputtering amid an economic slowdown.

Honda Jazz scooter

Honda Jazz scooter (Photo credit: Wikipedia)

The scooters go by names such as \”Pleasure\”, but marketing aside, this new fleet of women-friendly bikes reflects a deeper change in attitude and society in India, and has captured the attention of foreign manufacturers such as Japan\’s Honda Motor Co Ltd and Yamaha Motor.

Young, well-heeled and independent-minded women, who are also conscious of the perils of using public transport, are helping to propel a boom in sales of scooters.

The rising popularity of the scooter comes at a time of nationwide protests against the prevalence of rape and sexual assault in India. In one case, a young female student died after she was gang-raped on a bus in Delhi.

Weighing convenience as well as safety, some young women, and their parents, see the scooter as the best solution for commuting to work, going to college or simply going out to meet friends.

Scooter sales were up nearly 20 percent in the nine months through December, according to Society of Indian Automobile Manufacturers data, easily outpacing the 2.5 percent sales growth of full-size motorcycles. Sales of cars, trucks and buses all fell.

Still, scooters accounted for only 20 percent of India\’s 14 million-unit two-wheeler market in the last financial year. Two wheelers are the most common mode of transport for millions of middle-class Indians.

Both Honda and Yamaha have identified the growth potential in scooters, and are building models designed for women and adding new plants to keep up with demand.

\”College-going girls and working women are really creating this demand-wave in the scooter segment,\” said Abdul Majeed, a partner at PricewaterhouseCoopers India.

\”Housewives are also using scooters to drop (off) kids and buy vegetables,\” Majeed said, adding that he expects strong sales growth to continue and for companies to launch more scooters geared towards women.

Yamaha launched its first Indian scooter designed for women, the Ray, in 2012. The bike sells for around about 47,000 rupees ($750) and comes in colors such as \’starry white\’, \’plush pink\’ and \’burgundy bliss\’. About 70 percent of the women who buy it for themselves are under 30, the company says.

\”They don\’t want to trouble their parents or brothers. They want personal mobility,\” said Roy Kurian, vice president of marketing and sales at Yamaha in India. \”If a guy had to ride then he would have gone for a motorcycle,\” he said.

via Scooter boom: Young women find gusto on India’s roads | Reuters.

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11/01/2014

China parents count cost of sending children to overseas universities – FT.com

Jack Ma, one of China’s best-known entrepreneurs, thinks business success in China has nothing to do with prestigious foreign degrees: “When you want to judge whether a person . . . is excellent or not don’t look at whether they went to Harvard or Stanford,” he is famous for saying.

More and more Chinese parents apparently disagree with the co-founder of internet company Alibaba: they are increasingly spending three or four years’ annual family income to send their only child for foreign study. Some are now asking whether it is worth the investment.

The number of Chinese studying overseas has more than tripled in the past decade and continues to shoot up. The rise has been particularly dramatic among lower-middle-class families: according to a report from the Chinese Academy of Social Sciences, up to the end of 2009 students from such families made up only 2 per cent of all those who studied overseas, but by the end of 2010 the proportion had risen to 34 per cent.

For many Chinese families with children overseas, money is no object. But many lower middle-class and working-class families are counting on their only child to support them in their old age.

Foreign universities also increasingly rely on fees from Chinese students to ​boost their income. But is it worth spending Rmb1m-2m ($165,000-$330,00) on preparing for and completing an overseas degree, only to return to a job market where seven million graduates cannot find jobs?

According to Chinese recruitment agencies and human resources professionals, people who have studied overseas – known as “haigui”, or sea turtles, because they have one foot on land and one in the sea – command little if any salary premium when they start entry-level jobs back in China.

via China parents count cost of sending children to overseas universities – FT.com.

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28/12/2013

Small jet makers see big chance as China prepares to open skies | Reuters

Ferraris and Rolls-Royces have become common sights in China\’s cities as a new class of super-rich indulge a growing appetite for luxury, but tight regulation has meant the private jet, the ultimate status symbol of the global elite, remains rare.

Guests walk next to aircrafts as they attend the Shanghai International Business Aviation Show at the Hongqiao International Airport in Shanghai in this April 16, 2013 file photo. REUTERS/Carlos Barria/Files

Recent rules changes, however, indicate that China is preparing to open its skies to private aircraft, in a move that may herald the greatest expansion of business and private aviation in the last 30 years.

Last month, China\’s aviation regulator simplified flight approval procedures for private aircraft and lowered the threshold for obtaining a private pilot license.

via Small jet makers see big chance as China prepares to open skies | Reuters.

23/12/2013

China city caps car-buying to curb pollution | South China Morning Post

Another Chinese city has capped the total number of car licence plates it will issue annually, state media said Sunday, following moves by Beijing and other metropolises to curb pollution and congestion.

The world’s most populous nation is also the world’s largest car-buyer. But it is trying to curb poor air quality and other environmental damages caused by rapid development.

Tianjin, a coastal city near Beijing with 14 million people and 2.36 million registered motor vehicles last year, will cap new car plates to 100,000 a year, the official Xinhua news agency reported.

The government will award 60,000 plates by lottery, reserving 10,000 of these for fuel-efficient cars, and auction the remaining 40,000.

Of the total plates issued, 88 per cent will go to individuals and the rest to companies and other entities, while government bodies will be ineligible, Xinhua said.

Although the details were reported over the weekend, the policy was announced a week earlier and took effect five hours later, sparking “overnight panic buying”, it added.

Four other cities — Beijing, the commercial hub of Shanghai, Guiyang in the southwest and Guangzhou in the south — have imposed similar restrictions.

Beijing, whose population tops 20 million, launched a lottery system in 2011 for an annual maximum of 240,000 car registrations.

The capital has more than 5.3 million cars on the road, Xinhua said. Demand is so high that applicants have just a 1 in 80 chance, the China Daily newspaper said in October.

Guangzhou last year capped registration for small- and medium-sized cars at 120,000. The city of 16 million people had about 2.4 million cars on the road as of May, local media reported at the time.

Starting next March, Tianjin will also restrict a fifth of private vehicles from using the road on workdays depending on their plate number — a practice first introduced in Beijing in 2008.

via China city caps car-buying to curb pollution | South China Morning Post.

21/12/2013

Shark Fin Soup Still Sells Despite China’s Extravagance Crackdown – Businessweek

Guess it’s hard to break the habits of several life-times or even dynasties!

“Even as Chinese President Xi Jinping clamps down on excessive wining and dining—and even fancy funerals—the controversial delicacy shark fin soup remains on the menu in plenty of China’s upscale restaurants.

Shark fins for sale in Hong Kong

That’s shown by a survey of 207 high-end restaurants in Beijing, Shanghai, and Shenzhen carried out by Humane Society International and the Nature University, an environmental organization in Beijing. More than three out of four staffers queried, or those from 156 restaurants, said shark fin soup remains available. “Consumption of shark fin represents animal cruelty, wasteful extravagance, and is environmentally unsustainable,” Iris Ho, HSI’s wildlife program manager, said in a statement. China is the largest consumer of shark fin soup in the world, with the dish popular at official banquets, despite years of efforts to restrict it.

In March 2011 a group of Chinese legislators tried unsuccessfully to ban the country’s shark fin trade. The “soup represents wealth, prestige, and honor as the gourmet food was coveted by emperors in China’s Ming Dynasty because it was rare, delicious, and required elaborate preparation,” the official Xinhua News Agency reported at the time.”

via Shark Fin Soup Still Sells Despite China’s Extravagance Crackdown – Businessweek.

20/12/2013

Chinese Students in U.S. Boost Luxury Car Sales – Businessweek

Chinese students at the University of Iowa began coming into Carousel Motors in Iowa City about three years ago to get their Mercedes (DAI:GR) and Audi (NSU:GR) luxury cars serviced. Finally, general manager Pat Lind started asking if they’d ever considered his dealership when they made their original purchase. No, the students told him. Back in China, they’d been told to buy their wheels in Chicago before heading to college.

Among Chinese student car buyers in the U.S. in the past two years, 32 percent paid cash

So Lind began sponsoring the university’s Chinese student association, which sends information to incoming students in China before they arrive in the U.S. Sales to Chinese students doubled and now make up about 5 percent of the vehicles sold at the dealership, located about two miles from campus. “We became an advertiser,” Lind says, “and got our face in front of them.”

The number of students from China enrolled in U.S. colleges and universities reached 235,597 during the past academic year, more than triple the 64,757 enrolled in 2002-03, according to the Institute of International Education. These students often come from families that are better off than the typical American college student’s, says Sid Krommenhoek, a founder of Zinch, a consulting firm owned by textbook rental company Chegg that works with prospective Chinese students. Shelling out $50,000 for a high-end car is viewed as an affordable status symbol compared with back home, where such cars can cost two to three times as much because of hefty import duties.

via Chinese Students in U.S. Boost Luxury Car Sales – Businessweek.

18/12/2013

China’s Ownership Society, Where Success Means Having Stuff – Businessweek

This article confirms my views about the main characteristics of Chinese ‘mindset’, namely: materialistic, pragmatic and down-to-earth.  See – https://chindia-alert.org/social-cultural-diff/chinese-mindset/

“Chinese friends are often puzzled that I chose to come to Beijing as a journalist. It’s not that they aren’t patriotic or enthusiastic about China’s future prospects—mostly they are. But many wonder why anyone with a coveted U.S. university degree would voluntarily embark upon an exciting, if potentially unstable, career path; surely there are quicker paths to riches than journalism. And any successful career woman ought to tote a Prada bag, not a simple rucksack, right?

China's Ownership Society, Where Success Means Having Stuff

Recently the global market-research company Ipsos polled people in 20 countries about their attitudes toward wealth and success. Those in China were the most likely to equate success with material possessions, with 71 percent agreeing with the statement “I measure my success by the things I own.”

The next three countries were also large emerging markets, suggesting that people’s views may be shaped not only by culture, but by stage of national development: 58 percent of respondents in India agreed with the same statement, while 57 percent in Turkey and 48 percent in Brazil did. (Twenty-one percent of Americans did.)

People in China were also the most likely to say “I feel under a lot of pressure to be successful and make money,” with 68 percent agreeing. (A separate global poll last year by U.K.-based office-space company Regus found that Chinese workers were also the most likely to report increasing stress levels over the past year.)

Meanwhile, people in India were the most likely to be hopeful about their country as a whole over the next year, with 53 percent expressing optimism. Forty-six percent of people in China expressed optimism—considerably above the global average of 32 percent. And the most pessimistic? Those living in Spain, Italy, and France.”

via China’s Ownership Society, Where Success Means Having Stuff – Businessweek.

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