?Since the reform and opening-up, Chinese are once again realizing wealth and prosperity. By the end of 2000, the volume of wealth, measured by capital, had reached 38 trillion yuan (US$4.6 trillion), with privately-owned wealth accounting for most of China?s total assets,? Fan said.

These conclusions were drawn on the basis of two factors.

Capital Structure

In terms of volume, state-owned enterprises and state holding enterprises account for 31 percent, while private and individual enterprises make up 38 percent. If calculated on the basis of ownership, state capital accounts for 26 percent, while domestic individuals make up 57 percent of market share. Collectives and enterprises from Hong Kong, Taiwan, Macao and overseas enjoy up to 10 percent.

The statistics show the former pattern of wealth distribution, in which state and collectives dominated, has greatly changed. Private capital, an important part of social capital, is exceeding the volume of state capital, and even the combined volume of state and collective assets. In addition, 22 percent of capital earnings now flow to individuals.

Financial Assets

Cash, saving deposits and securities owned by government, enterprises and individuals are 82, 236 and 130 times higher than in 1980, accounting for 18.6 percent, 31.7 percent and 49.7 percent of domestic financial assets respectively. Individuals own the majority of financial assets, mainly net assets.

Research on China?s wealth shows that total domestic financial assets are currently worth 20 trillion yuan (US$2.4 trillion). Thirty percent of urban residents own nearly 80 percent of all individual financial assets, and half of all individual assets are in the hands of high-salary individuals, which make up only 20 percent of total population.

As a country of insufficient capital, China?s capital earning is only 3 percent of that of US. China is a typical labor-intensive country with capital earnings of 6.4 percent. The capital earnings of state, rural enterprises, and other enterprises are at 4.9 percent, 18.4 percent and 8.9 percent respectively.

(china.org.cn by Tang Fuchun, January 24, 2003)