Asia’s Rising Stars: Leading for 2037
There are now 2,189 billionaires globally, with a combined net worth of $ 10.2 trillion, as the pandemic’s stock market rally pushed their asset values to new highs..
As of July 2020, the Asia-Pacific region accounted for the largest number of super-wealthy people, according to Swiss bank UBS, with 831 (38%) of them living in a region where billionaires are now worth $ 3.3 trillion, according to a new Billionaires Insights report. for 2020. By comparison, 762 (35%) of the ultra-rich live in the Americas, while in EMEA (Europe, Near East and Africa) is 596 (27%).
«The results, based on interviews and data from 2,000 billionaires in 43 markets, show that the Asia-Pacific region maintains its position in the world as an engine of wealth growth.», – stated Anurag Mahesh from UBS Global Wealth Management at the report presentation on Wednesday.
Mainland China has become the main wealth creation market in the region with 415 billionaires, followed by India (114), Hong Kong (65), Taiwan (40) and Australia (39). The study found that there are 636 billionaires in the US.
Much of the growth in billionaire wealth this year has been closely tied to the market recovery that began after the dramatic selloff in April, as the assets of the super-rich tend to be tied to the public companies they manage or invest in..
However, from 2019 to the peak of the recession in April 2020, the wealth of Asian billionaires remained relatively invulnerable, falling 2.1% compared to 10.1% in EMEA and 7.4% in the Americas..
Manesh, co-head of the Global Family Office’s Asia-Pacific, said this may be due in part to the region’s dominance in two key industries – technology and healthcare – that have surged since the pandemic.
The Asia-Pacific region is home to the world’s highest proportion of billionaires in technology and health, accounting for 181 (8%) of the total billionaires, compared with 153 (7%) in the Americas and 88 (4%) ) in EMEA. Meanwhile, as the report notes, the growing focus on success and innovation in both sectors has helped propel them forward over their more traditional counterparts..
«Interestingly, but not surprisingly, assets in the technology and health sectors grew faster than other sectors. Over the past decade, the fortune of billionaires in the tech sector has grown 5.7 times, while the fortune of billionaires in the financial services sector has grown 2.3 times.», – said study co-author Anuj Kagalwala, Partner and Head of Asset and Wealth Management at PwC Singapore.
Donations to fight the pandemic
In the report, economists argue that the so-called K-shaped recovery may be the most likely outcome of the coronavirus, meaning that different sectors of the economy are recovering at different rates. In this case, the finances of the richest recover quickly, while the finances of the poorest remain stagnant or even deteriorate..
The report says that 209 billionaires have invested in a pandemic totaling $ 7.2 billion from March to June 2020.
Of these, 175 (76%) were financial donors, that is, donated money to aid, and 24 (19%) were manufacturers who repurposed their production lines, for example, for the production of medical equipment. 10 of these (5%) were influential entrepreneurs who contributed to long-term strategies such as vaccine development.
UBS’s Mahesh said research shows it is «greatest splash» donations among billionaires during this time period.