Chinese New Money Accounts for 40% of Newly-increased Wealth of Global Billionaires

Release time：2021-02-24

Global Family Wealth Management

Industrial Weekly Report

1. Global billionaires increased 1.9 trillion dollars in 2020, 40% of which belongs to Chinese new money

As Forbes estimates, in 2020 the total wealth of over 2200 billionaires grew by 1.9 trillion dollars, among which 810 billion dollars, accounting for more than 40%, were increased by over 400 billionaires from Mainland China and Hong Kong. Calculating by the stock price on December 11th 2020, the total amount of wealth of billionaires worldwide was estimated to be 11.4 trillion dollars, rising by 20% compared to 9.5 trillion dollars at the end of 2019.

Billionaires’ wealth increase in the US is especially remarkable, with the total wealth of over 600 billionaires reaching up to 4 trillion dollars. Ever since the beginning of 2020, the number increased 560 billion dollars, rising by 16%. This was mainly driven by the rising stock market. In spite of the stock market crash due to the outbreak of COVID-19 epidemic in March 2020, the market recovered sharply afterwards. S&P 500 index was still close to record high, rising by 13% in total in 2020, while NASDAQ index rose by 38% in total.

Data Source: Bloomberg News

2. UK research says reduction of tax on the rich will not benefit the entire society

According to a study focusing on developed countries co-released by London Research Institute of Economics and Political Science and University College London, the reduction of tax on the rich over the past 50 years has exacerbated inequality with little benefit for those outside the billionaire class. The study may offer reasons for the UK government to encounter the epidemic impact by increasing tax on the rich. The study finds that the reduction of tax on the rich over the past 50 years is truly beneficial to those under direct influence only, while contributing nothing to promoting employment or economic growth.

Data Source: Bloomberg News

3. New US insurance regulations permit large-scale enterprises to conduct banking business, likely to give birth to Amazon Bank or Walmart Bank in the near future

As reported by foreign media, Amazon, Facebook, Walmart and other tycoons may possibly march into the Wall Street business. A critical regulatory department in the US, Federal Deposit Insurance Corporation, has paved the way for non-banking institutions to engage in loan business.

Recently, Federal Deposit Insurance Corporation (FDIC for short) approved a regulation for industrial loan companies (ILC), permitting large-scale enterprises to conduct banking business while also freeing professional financial companies from capital and liquidity restrictions.

Data Source: Bloomberg News

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