(Yicai Global) Oct. 14 -- Chinese households had financial assets worth EUR32 trillion (USD31.2 trillion) last year, an all-time high and a 12.2 percent gain from 2020, as incomes rose, a new report by German insurance giant Allianz showed. 

Chinese households overtook those in Japan to rank first in Asia and second only to the United States globally in 2021, with their financial assets making up 13.6 percent of the total worldwide, up from 7.2 percent in 2011, according to the Allianz Global Wealth Report 2022, released on Oct. 12. US households accounted for 45 percent of the global total. 

Chinese government support policies over the years have boosted residents' incomes, driving household financial assets to a new high, said Zhen Qingzhe, general manager at Allianz China General Insurance. 

Deposits made up 48 percent of Chinese households’ financial assets last year with a 10.4 percent increase from 2020, while securities and wealth management products made up 41.4 percent of the total with a 13.2 percent gain, the report showed. Insurance policies and pensions accounted for 10.6 percent, up 16.8 percent.

At 13.9 percent, Chinese household liability growth outpaced asset growth due to rising property prices. After deducting liabilities, Chinese net assets per capita at the end of 2021 reached EUR15,400 (USD15,000), still significantly higher than Asia's average, per the report. 

Global financial assets increased 10.4 percent to EUR233 trillion (USD226.91 trillion) last year, a third straight year of double-digit growth as eased monetary policies promoted stock market gains. Two-thirds of the run-up in wealth was contributed by stock markets, per the report. 

By valuation, global financial assets are expected to fall over 2 percent this year, the biggest decline since the 2008 financial crisis, due to geopolitical conflicts, inflation, rising energy prices, food shortages and other negative factors, the report said. In real terms, households will lose a 10th of their wealth, it added.

Editor: Tom Litting