Shenzhen has experienced an unparalleled surge in millionaire growth over the past decade, outpacing other first-tier cities in China such as Beijing and Shanghai. According to a recent report by New World Wealth and Henley & Partners, Shenzhen saw a staggering 140% increase in its millionaire population, with an additional 10% growth in 2023 alone. This growth is attributed to the city’s booming business scene and organic income growth, as well as an influx of high-net-worth individuals from cities like Beijing, Shanghai, and Hong Kong.
Shenzhen’s Unique Economic Landscape
Unlike Shanghai, which heavily relies on state-owned enterprises for economic power, Shenzhen’s corporate landscape is dominated by private-sector entrepreneurs. This entrepreneurial spirit, coupled with a pro-business and pro-innovation regulatory environment, has led to the rise of global tech giants like Tencent, Huawei, and BYD within the city. Erica Tay, director of macro research at Maybank, emphasizes that Shenzhen’s ability to create more millionaires hinges on maintaining a conducive environment for entrepreneurs.
Designated as one of China’s first special economic zones in 1980, Shenzhen has attracted foreign investment, technology, and market-oriented reforms over the years. Its proximity to the business-friendly hub of Hong Kong has also played a significant role in the city’s economic development. Zhiwei Zhang, chief economist at Pinpoint Asset Management, believes that Shenzhen holds the most promise in Mainland China in terms of economic potential, citing its current position as the 27th wealthiest city in the world with 50,300 resident millionaires.
Looking ahead, analysts project that Shenzhen will continue to experience robust growth all the way to 2040, surpassing Beijing and Shanghai in terms of economic expansion. With its current growth rate, Shenzhen is expected to break into the ranks of the Top 10 wealthiest cities globally by 2040. This trajectory underscores the city’s potential as a hub for innovation, entrepreneurship, and wealth creation. Maybank’s Tay emphasizes that Shenzhen’s ability to mint more millionaires will ultimately depend on its continued support for the entrepreneurial ecosystem.
Shenzhen’s rapid rise in millionaire numbers reflects the city’s dynamic economic landscape, entrepreneurial culture, and pro-business policies. As a beacon of innovation and tech development, Shenzhen is poised to solidify its position as a global economic powerhouse in the coming years, attracting not only wealth but also talent and opportunities from around the world.