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Chinanews, Beijing, Aug 15 – A recent report on the life of the affluent1 class in China shows that 65% of the affluent families in China buy two houses and 83% of them own a villa2 as their second house.
The MasterCard International released the report in Beijing on Monday. The affluent class consists of people living in Beijing, Shanghai and Guangzhou. According to this report, the normal affluent class are those whose family income reaches 25,000-50,000 US dollars a year while the super affluent class are those whose family income exceeds 50,000 US dollars a year. The report finds that most rich people bought their second house at around 2002, when there were not many investing channels in China. Buying house, therefore, became an appropriate way of making investment. In recent years, however, as more and more investing channels appear in the market, many rich people tend to choose other investing methods. Some of them buy mutual3 funds while some buy the various financial management products launched by banks. As more and more investment products appear in the market, rich people are not as enthusiastic as before about buying houses, said Wang Yuehun, chief economic consultant4 at MasterCard's Asia-Pacific region. The report shows that 26% of the rich people have bought three houses, with the average floor space of their third house reaching 184 square meters. In addition, 8% of the rich people buy four houses and most of them bought it at around 2004.
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