China Richest Pocketing Over $1 Trillion in Hidden Wealth

The richest people in China may be even richer than officially reported, according to a study by a Beijing-based economic think tank.

The China Reform Foundation has found Chinese households have concealed as much as 9.3 trillion yuan (about $1.4 trillion U.S. dollars) of income in 2008. This is equal to 30% of the country's GDP.

The research, sponsored by Swiss Bank, Credit Suisse, found that nearly two thirds of that unreported income goes into the pockets of the richest 10 percent.

The study was carried out by researchers who surveyed people they knew, in hopes that it would reduce the chances of lying. More than 4,000 families from 19 provinces were surveyed.

The research found that the richest 10% of households earned 65 times more money than the country's poorest 10%. Official statistics had said the difference was only 23 times.

The study suggests the grey income is usually connected with misuse of power or corruption. The sources range from stock market manipulation, property deals, large bonuses from state-owned companies and lavish gifts given to powerful officials and their relatives.