China's Wealthy Splurge $63 Million at Luxury Show in Shanghai

China's wealthiest lavished 500 million yuan ($63 million) on Hennessy X.O spirits, Porsche sedans, South African diamonds and other luxury goods during a show in Shanghai, double the value of transactions a year ago…

"China has embraced every aspect of luxury pursuits, whether it's hunting, gambling, jets or yachting," said Peter Thompson, a partner of yacht broker Cavendish White, whose clients include U.S. tycoon Donald Trump. "There're a lot of rich people and they have a desire to explore new ways of life."..

Shanghai is China's commercial capital and richest city. Saks Inc. plans to open its first luxury store in Shanghai in 2008, to sell fine designer apparel, shoes, jewelry, accessories, handbags, fragrances and cosmetics…

LVMH Moet Hennessy Louis Vuitton SA, the world's largest luxury goods maker, plans to open two to three stores a year in China, where sales are rising 50 percent annually. Cie. Financier Richemont AG, the world's second-biggest, expects to quadruple sales in China within five years by selling more Cartier jewelry and Piaget watches.

Honda Motor Co. in September started selling luxury Acura brand cars in China to compete with Volkswagen AG's Audi AG, and Bayerische Motoren Werke AG in the world's fastest-growing consumer market.

Yachting is at the top end of the luxury market, said Ivan Liu, China marketing director of Sunseeker International Ltd., a U.K. yacht company that has sold eight yachts in the country worth at least $2 million each…

A growing income disparity between the country's new rich and its poorest rural peasants has created unrest among farmers and workers. Premier Wen Jiabao has said the need to address "social harmony" in the country is a priority.

About 200 million Chinese live on less than $1 a day, according to 2004 World Bank estimates. Mass protests in China increased to more than 87,000 last year from 10,000 in 1994, according to government figures.