Five years ago, the wealth efect was also
high in tier one cities but not in smaller cities.
In fact, the ratio of wealth gains to disposable
income in the former was 3.1 times in 2013. The
macro impact was therefore limited, as the total
population in tier one cities was just 71m. But the
population in tier two and satellite tier three cities
is much greater, at around 250m.
current wealth gains are much more signifcant.
The combined population of tier one, two and the
satellite tier three cities is 600m, or almost
three-quarters of the Chinese urban population.