Chinas Wealthiest Cities Highest Disposable Income

Chinas Wealthiest Cities Highest Disposable Income

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In our recent series of examining Chinas new demographics, weve looked at the fastest growing cities, the fastest growing provinces and discussed how growth is going to move from the coastal regions to the inland regions.

As we noted, Chinas coastal regions will experience a slowdown in growth as they become more affluent and accordingly, expensive. Competition will also increase as numbers of companies attracted by the higher disposable income in the coastal regions bring, in turn, more people wanting to sell to them. Thats not to say that such cities dont provide great markets to sell to they will. But where are they?

The top ten cities in order of decreasing disposable income are;

Shenzhen
Shanghai
Guangzhou
Wenzhou
Hangzhou
Beijing
Suzhou
Dongguan
Tianjin
Wuxi

As the observer will note, these cities are all within an hour or two of Chinas eastern seaboard. None are considered inland cities in the manner of such Chengdu or Wuhan would be. The demographics make for interesting reading, not least because Shenzhen, rather than Shanghai, tops the list, with residents both earning more and having more disposable income.

However, Shenzhen is also becoming more expensive. The average wage may be far higher at RMB92,771 against Shanghais RMB77,556, yet the Shenzhen resident only has RMB1 more in disposable income than his Shanghai counterpart. Shanghai then, could be considered better value for money in pocket as a percentage of wage. But that ability for Shenzhen residents to put more cash through their banks may provide them with more leverage in purchasing or raising loans for housing for example. More cash, more credit.

Its also interesting to note the still relatively obscure cities of Wenzhou and Wuxi making the top 10. While foreign investment in these cities is constant, it is nowhere near the levels of those in Shanghai or Tianjin by comparison. Here, a combination of lower costs and local industries have raised the living standards and disposable income levels of the residents in these cities. Less reliant on foreign investment, they have developed their key industries themselves, Wenzhou long being a source of private funding for domestic businesses on a national basis (some very old, serious family money is concentrated in the city) much of that interestingly enough sourced from overseas. Wenzhou is the primary recipient of overseas Chinese funding, put to good use by the local, well entrenched, private economy. Wuxi meanwhile, has developed quietly on its own. Its one of Chinas oldest cities and has long offered cost refuge for businesses wanting proximity to the markets of nearby Shanghai but without the overheads.

About the Author:
To read the rest of this article by Chris Devonshire-Ellis visit China-Briefing.com.

Chris Devonshire-Ellis founded China Briefing, India Briefing and the Asia Briefing publishing house.



Article Originally Published On: http://www.articlesnatch.com


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