Since 2020, Li Jiang, a veteran manufacturing entrepreneur from Guangdong, has been selling off his properties one by one – a move that once puzzled many of his friends. For decades, real estate had been the ultimate “anchor” for retirement planning and wealth transfer among China’s high-net-worth families.
At his peak, Li concentrated much of his wealth in property, owning seven assets ranging from CBD apartments to high-end suburban villas. These were intended partly for retirement and partly to pass his wealth along to the next generation.
Now, Li retains only two: one for his own use and another for his son when he returns from his studies overseas.
“Property investments feel more like an uncertainty or burden. One is good enough for a comfortable retirement,” said Li, currently in his 60s. He has allocated a portion of his wealth into high-value life insurance and premium medical insurance, and asked his son to invest in some trusts focusing on emerging industries.
Li’s viewpoint appears to be shared by many of China’s high-net-worth individuals (HNWI). Surveys conducted by the Hurun Research Institute show China’s most affluent are quietly reshaping their retirement and investment strategies, systematically reducing their holdings in property while increasing their allocations to insurance, gold and overseas assets.
This shift, a reflection of heightened concerns over liquidity and cash flow stability, is being compounded by declining real estate returns and China’s rapidly ageing population. As this influential group modifies its portfolio, it is likely to have an effect on broader patterns in the country’s retirement and investment markets.