The smart money, by the way, is leaving China. The country’s millionaires and billionaires are emigrating in record numbers, and an emigration of 15,200 people is expected in 2024.
Henley & Partners, an investment migration company, follows these phenomena and points out that the figure expected for this year is around 10% higher than the emigration of 13,800 in 2023. Added to this, about 500 wealthy people are expected to leave Hong Kong, the accumulation of emigration is even more significant. The United States and Singapore will get the maximum flow. There is no way to document the amount of wealth those Americans will take with them, but based on trends beyond, Henley & Partners estimates that immigrants will take with them an equivalent wealth of between $30 million and $1 billion.
The reasons migrants give for their move vary, as might be expected, but most cite the uncertainties implicit in China’s current economic landscape and how those uncertainties raise questions about long-term investment returns. assessment of uncertainty, specifically because the decline in asset values has hurt household wealth and therefore left doubts about China’s overall economic expansion prospects. Some, in their decision, refer to the downgrading of China’s monetary outlook through two rating agencies, Moody’s and Fitch. An unsaid motivating element, and for apparent reasons, is the hostility that President Xi Jinping has shown in the future towards his own companies and private wealth in general.
Singapore has long been the preferred destination for such immigrants. But recently, Singapore has stepped up its scrutiny of incoming Chinese wealth. Even those who have nothing to hide would arguably prefer the hassles and loss of privacy now implied in a haven in Singapore. Canada and the United States will continue to be popular opportunities for the Chinese and their money. The UAE has also gained popularity, offering a zero source of income taxes, a lavish lifestyle, and “golden visas” that simplify investment budget management. and private. Japan has also gained popularity due to its proximity to China, its horny lifestyle, and the fact that it can become one of the safest countries in the world.
To be fair to China, it is not the only country experiencing an exodus of Americans and wealthy families. South Korea and Taiwan have also noted such deviations. In the case of those two countries, security is more than the economy the main concern. For the former, North Korea’s belligerence is of wonderful importance. For Taiwan, it is China’s belligerence that encourages others who can to put their lives, property and families to safety. Questions about the United States’ willingness to protect Taiwan will undoubtedly have an effect, especially if Donald Trump enters the White House in 2025.
China watchers may notice two telling messages in this migration story. The first is that it makes an obviously negative comment about President Xi Jinping’s economic management. Second, the outflow of this wealth will make Beijing’s efforts to revitalize the Chinese economy even more difficult, even if there is no way to quantify the effect.
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