Council Hoping Government Stimulus Measures Will Spur Consumption In Notoriously Frugal Rural Areas
China is one of the world's top gold markets, owing to its growing middle-class consumption and reliance on gold as a traditional hedge
Shanghai Daily reports today that the World Gold Council has started a major sales drive in rural China, banking on indications that the country’s second- and third-tier cities have more sales potential than their first-tier counterparts in terms of gold consumption. This sales push follows similar drives by antiques, visual arts, shopping center and luxury car companies to attract customers in China’s interior — where any semblance of “luxury fatigue” has yet to sink in and the middle class is seeing gradual growth.
As one of China’s traditional hedges, the World Gold Council is banking on gold’s allure to buyers in remote areas both for its value as well as its cultural resonance.
“Rural areas showed better-than-expected demand for gold in the first half in China,” said Gerry Chen, business development manager China of World Gold Council.
China is the only country in the world where gold jewelry demand has risen in the aftermath of the world financial crisis, the council said. Sales in China’s mainland rose 9 percent in the first half, while global demand contracted 8 percent.
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Millions Of Mainlanders Willing, Able To Spend On Travel, Luxury
Hong Hao, Money Front, 2005 © Hong Hao
The Shanghai Daily has a story today findings by the Hurun Report (a sort of Chinese Robb Report) on the growing number of millionaires in China, noting that the most recent tally has exceeded the expectations of some China watchers:
The mainland is home to about 825,000 people who are worth more than 10 million yuan (US $1.5 million) and at least 51,000 who are worth more than 100 million yuan, the Hurun Report said, the first time it calculated those figures.
The number of China’s super-rich “is beyond my expectation, and probably that of most of foreign people,” said Hurun Chairman Rupert Hoogewerf. “The rapid growth of the number of rich people in China manifested itself in the way the Chinese economy has kept a steady pace in recent years, because of surging real estate and stock markets.”
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Tagged China, hurun report, Investment, Luxury, millionaires, robb report, shanghai, shanghai daily, spending, wealth