By Natalee Hung, Senior Research Associate, Centre for Asian Philanthropy and Society (CAPS)
Wealth in Asia is growing with significant implications for philanthropy. According to a 2022 study by Credit Suisse1, the assets of the wealthiest top 1% of people skyrocketed—11 times in India and an astonishing 34 times in China from 2000 to 2021. While in the U.S. the increase was only 3.6 times in the same period. By 2020, Asia had surpassed Europe as the world’s second-richest region, boasting 169,889 Ultra-High-Net-Worth2 (UHNW) individuals, accounting for 28% of the global UHNW population3. As wealth continues to grow, so does the potential for philanthropy.
However, despite the rising wealth, Asia grapples with significant social, economic and environmental challenges, and philanthropy can play an important role in addressing these formidable challenges. Understanding the philanthropic interests and approaches of this rapidly emerging group of wealthy donors can help leverage the much-needed resources for doing good. In late 2023, the Centre for Asian Philanthropy and Society (CAPS) released a report titled, ‘The Tao of Giving: Insights into Ultra-High-Net-Worth Giving in Greater China’. The report draws insights from a survey of 135 UHNW individuals across Mainland China, Hong Kong, and Chinese Taipei and this is what we found:
1. Active engagement in philanthropy: A striking 97% of UHNW respondents engage in one or more forms of private social investment. The survey results show that UHNW Individuals are actively involved in their philanthropy, with 74% directly managing their wealth themselves or with their family members. We also found that 98% of the respondents want to learn more about different funding mechanisms and topics related to social investment.
2. Philanthropy as a family value: Philanthropy is viewed as a crucial element in fostering family harmony and instilling shared values in the next generation. Ninety-six per cent of respondents reported that their philanthropic efforts positively impacted their families, strengthening social legacies and deepening intergenerational connections. Interestingly, younger wealth holders showed a heightened sense of mission in their giving, often exploring innovative funding vehicles such as impact investing.
3. Environmental concerns – Interest versus action: As conversations around climate change and sustainability gain prominence in global discourse, it is encouraging to see that more than a third of respondents (35%) chose environmental protection and climate change as an area of personal interest, higher than education (30%) and health (30%). Philanthropic action on climate issues, however, is lagging. Of those who expressed concern for environmental issues, only 29% act on it through philanthropic investment.
4. Approaches to philanthropic giving in Mainland China, Hong Kong, and Chinese Taipei differ: The philanthropic landscape varies significantly across Mainland China, Hong Kong, and Chinese Taipei and is influenced by historical context, the regulatory environment, and the nature of the relationship between private and public sectors.
- Mainland China: Here, the government plays a crucial role, with private social investments often supporting state initiatives. Fifty-eight per cent of Mainland China respondents selected government entities/agencies when asked who they turned to for advice. The future of philanthropy in Mainland China will be influenced by a massive ¥18 trillion (approximately US$2.47 trillion) intergenerational wealth transfer expected in the coming decade4.
- Hong Kong: The long history of family philanthropy encourages many Hong Kong UHNW individuals to grow and evolve their philanthropic giving as the family tree extends. Over half of the respondents in Hong Kong identified strengthening their sense of purpose and mission (67%) and educating the next generation on family legacy (51%) as important impacts of their philanthropy.
- Chinese Taipei: The mature social sector and regulatory environment in Chinese Taipei influence how philanthropists give. Eighty-two per cent of Chinese Taipei respondents showed interest and participation in social welfare issues for marginalised groups. Seventy-six per cent of them engaged in social investments through private foundations, compared to 65% in Hong Kong and 53% in Mainland China.
The findings of our report speak to the needs and desires of families and individuals in Greater China to learn and do more in philanthropy. There is a significant opportunity for those who work directly with them, such as banks and family offices, to support their giving objectives by providing philanthropic advice and tools in their service offerings.
By fostering a deeper understanding of UNHW giving in the region, we hope to inspire both wealth holders and their advisors to harness private capital for impactful philanthropic initiatives, creating meaningful impacts for our communities and the world.
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- Kuronuma, Y. (2022, October 4). Asia has over 950 billionaires, outnumbering all other regions. Nikkei Asia. Retrieved from: https://asia.nikkei.com/Spotlight/Datawatch/Asia-has-over-950-billionaires-outnumbering-all-other-regions
- Ultra-high-net-worth individuals are defined as people with a net worth of US$30million or more.
- Knight Frank. (2022). The Wealth Report 2022. Retrieved from https://www.knightfrank.com/siteassets/subscribe/the-wealth-report-2022.pdf
- Hurun Research Institute & Yi Tsai. (2022, April 14). Yi Tsai Hurun China Wealth Report 2021. Retrieved from https://www.hurun.net/en-US/Info/Detail?num=WJAXJNF4MUWB
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About CAPS
Established in 2013, the Centre for Asian Philanthropy and Society (CAPS) is committed to improving the quantity and quality of philanthropic giving throughout Asia. Our mission is to improve the social investment sector in Asia by identifying and disseminating best practices, models, policies and strategies that can contribute to positive system change.
Natalee Hung is a Senior Research Associate at the Centre for Asian Philanthropy and Society (CAPS). With a background in quantitative data analysis and survey research, Natalee is passionate about how data can help drive change in philanthropic and social sector ecosystems. Prior to joining CAPS, Natalee worked at The University of Hong Kong to support research on healthy ageing across different national contexts. She has also worked with International Care Ministries, a Philippine-based NGO supporting extreme low-income households, on monitoring and evaluation research.
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