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Chinese middle-class families defined
(eastday.com)
Updated: 2004-06-02 10:31

A total of 100 million Chinese families will be included in the middle-class income group in six years, with each family expected to own assets worth of 620,000 yuan (US$74,700) by that time, according to the calculation of the BNP Paribas Peregrine, a leading investment bank worldwide, according to Tuesday's Shanghai Daily.

Chinese middle-class families defined
A saleswoman introduces a newly developed housing project to a customer in Zhengzhou, central China's Henan Province. Many real estate developers and automobile producers are targeting the swelling middle-class population in China as the potential customers. [newsphoto/file]

According to the French investment bank's definition on the Chinese mid-class group, well-educated professionals and white-collar employees (brain workers) with per capital annual income of 25,000-30,000 yuan, household annual income of 75,000-100,000 yuan and participating in the decision-making and management of companies are covered in the group. Around 13.5 percent of the total Chinese population is included in the group.

In 2002, 50 million Chinese families were qualified for the standard, with per household having annual income of 75,000 yuan and owning 310,000 yuan of assets on average.

By 2010, the figures will double, with up to 100 million families qualified for the standard, per household having annual income of 150,000 yuan and owning assets of 620,000 yuan, according to the BNP Paribas Peregrine.

With growing population in the middle-class group, the Chinese consumption rate is expected to increase from 58 percent in 2002 to 65 percent by 2010 and to 71 percent by 2020, very close to the rate in developed countries, said Chen Xingdong, chief China economist with BNP Paribas Peregrine in Beijing, adding that China has a potential enormous consumer market.



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