A new report on the growth of billionaires in the world noted that a new billionaire is created China every week. The report also found that there was an increase of 19 per cent in the collective wealth of the world’s billionaires – with their accumulated wealth reaching a whopping $8.9 trillion last year.
In 2017, globally, 199 new billionaires were created. And about one third of that number had made their wealth from one form of innovation or the other. On the other hand, the rest of the newly crowned billionaires generated wealth by expansion and scaling up of their wealth in the Asia-Pacific region. The report was prepared by UBS and consulting company PwC.
The growth in the number of billionaires as well as their means to become billionaires was most evident in China. The number of billionaires in China increased from 318 a year ago to 373 last year and the combined wealth of the billionaires in the country increased by a whopping 39 per cent to reach $1.12 trillion said UBS and PwC in their 2018 edition of their Billionaires Insights Report.
“China’s billionaire entrepreneurs are leading their country’s economic transformation, and by extension that of the rest of Asia,” the report said. “Over little more than 10 years, they have created some of the world’s largest companies, raised living standards and made fortunes at an unprecedented pace.”
The report also noted that the number of billionaires in Asia is already more than the number of billionaire sin the United States and these billionaires were set to become wealthier than their counterparts in the US within just the next three years. The report was prepared by UBS that manages wealth management which totals about $2.5 trillion in assets, and was aided by the global consultant firm PwC.
“A new cohort of Chinese entrepreneurs is challenging Silicon Valley, amid rising tensions over trade and intellectual property. They are developing new business models, seizing opportunities, moving rapidly between business sectors.”
The report however noted that the US was ahead in terms of the creation of the number of so-called ‘unicorns’–companies. Between 2016 and 2018, the US produced 62 ‘unicorns’ companies – where each company has a valuation of at least $1 billion, while China produced 50 ‘unicorns’ companies in the same period.
The report also noted that young Chinese entrepreneurs would continue to be converted into ranks of the billionaires in the coming years driven by rapid urbanisation and productivity growth for such entrepreneurs who are at the forefront of China’s wealth creation.
(Adapted from ExpressTribune.com)