China’s rich and mass affluent live in a parallel universe

AFTER three years of living through a pandemic, China’s rich are spending more these days, even scouring the globe for overseas homes. The mass affluent, however, have become increasingly conservative and discerning, making adjustments that allow them to maintain their quality of life and save for rainy days.

The latest 2022 results by Hong Kong-listed Hang Lung Properties, a mall operator in China, offer a glimpse of the situation: Luxury spending in cities like Shanghai and Shenyang which were hurt by prolonged Covid-19 lockdowns, have taken a knock.

Hang Lung’s Heartland 66 in Wuhan, which opened in 2021 during the pandemic, has performed well and added Hermes, Cartier, Tiffany and Van Cleef & Arpels to its list of stores last year.