Report Shows China’s Millionaire Exodus to Become the World’s Biggest

Chinese Millionaires Flock to Other Countries as Wealth Transfers Reach Record High

China’s ascent to the top of global wealth rankings appears to be slowing down. According to a report by migration consultancy firm Henley & Partners, the country will lose more millionaires than any other country this year. Henley & Partners reports that 13,500 individuals with investable wealth exceeding $1 million will relocate this year. About 10,800 millionaires left China in 2022, and this has been the trend for the past decade. 

Reasons for Wealth Transfer

A few factors are contributing to the migration of millionaires from China. Firstly, President Xi Jinping‘s campaign to tackle the country’s high-income inequality has led to a regulatory crackdown on some of the country’s largest private companies. This campaign coincides with the country’s efforts to boost its post-COVID economy that has culminated in the promotion of common prosperity.

Many Chinese millionaires are also frustrated with the country‘s tough approach to COVID-19 as snap lockdowns and other disruptive measures were imposed to drive cases down to zero. Currently, Beijing has relaxed its COVID control regulations, which have made it easier for Chinese millionaires to travel overseas to check out their relocation possibilities in person. 

Where Are Chinese Millionaires Relocating?

Australia and the United Arab Emirates are forecast to attract the most Chinese millionaires fleeing the country’s regulatory changes affecting the wealthy. Many of these millionaires are also looking at Singapore, which has become the third most popular destination. The interest can be attributed to Singapore’s well-developed wealth management sector, its close proximity to China, its connections to Chinese culture, and its neutral position between the US and China makes it an attractive option to those who wish to avoid US scrutiny regarding business activities in China. 

The increasing Chinese elite’s interest in Singapore’s financial industries, along with the growing family offices and other firms, has started to drive up the country’s living costs. Singapore’s median private home price is now $1.2 million, surpassing Hong Kong as the leading expensive city in the region. Singapore also has high median monthly rents that cost almost $2,600. 

The Bottom Line

As the wealthy population is leaving China for more favorable conditions, it remains to be seen how the country will respond to respond to keep the wealthy at home. China’s restrictions on cryptocurrencies, tight capital controls, and regulatory control are among the underlying factors driving millionaires from the country. The next decade presents an excellent opportunity for China to create an environment that establishes support and ensures a sustainable growth rate. However, it is yet to be seen whether the country can achieve these aims.