China has the world’s second-largest number of ultra rich, after the US. More than 32,000 persons are holding wealth exceeding US$50 million, according to Credit Suisse Group AG.
About 10,800 rich Chinese migrated in 2022, the most since 2019, and the second most after Russia, according to New World Wealth. Investment migration consultant, Henley & Partners saw inquiries from Chinese individuals on migration more than quadruple in the days after China’s reopening compared to the week before. Emigration was low in the early part of the pandemic, but queries doubled in 2022.
Juwai IQI, a real-estate firm that helps sell international property to customers in Asia, said the number of mainland Chinese buyer inquiries dropped 26% in 2021 and fell 11% in 2022, but it’s gone up 55% in 2023 so far and has stayed at that level.
Searches and keyword mentioned of “emigration” on Wechat almost quintupled on Dec 26 from a day earlier to 110.7 million, after China downgraded Covid-19 to a lower threat disease class and announced that it would scrap all quarantine measures. As the wealthy look to invest abroad, private banks have been building their desks to deal with the flow of capital. Many have been hired in Singapore to serve wealthy Chinese that are investing in the city state. The flood of money has prompted sky-rocketing prices for mansions, golf memberships to luxury car sales in Singapore.
China has strict capital controls. Citizens can convert only $50,000 worth of yuan into foreign
currencies each year. But despite those restrictions, the reopening of travel is enough to fuel
outflows with tourism alone. Tourism outflows could hit $100 billion to $200 billion in 2023. The outflows should have “some depreciation pressure” on the yuan, but the central bank will intervene if required.
But are we interested? No, our MM2H is off-the-mark. There are other “safe” places with better environment, eco-system and positive outlook. Will we change under the new Government? No, the present Home Minister seems to be a near replica of the old Home Minister!
Reference:
Exodus of wealthy Chinese accelerates with end of Covid Zero, Bloomberg News,
26 January 2023
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