Chinese Millionaires Set to Depart as Economy Slows and Political Controls Tighten
A new report by investment migration consultancy Henley & Partners predicts that the exodus of Chinese millionaires will persist this year due to a combination of economic slowdown and increased political controls. The Henley Private Wealth Migration Report indicates that China is projected to experience a net outflow of 13,500 high net worth individuals, adding to the loss of millionaires over the past decade. Despite having an estimated 823,800 millionaires, the emigration trend could exacerbate China’s significant economic slowdown, potentially leading to the outflow of millions of dollars in wealth. Henley defines high net worth individuals as those with investable wealth exceeding $1 million.
Slowing Wealth Growth and the Impact on China’s Economy
Andrew Amoils, Head of Research at New World Wealth, highlights that the recent outflows of wealth from China could be more detrimental than before, given the general deceleration of wealth growth in the country in recent years. While China experienced robust economic growth from 2000 to 2017, wealth accumulation and the growth of millionaires have been stagnant since then. This ongoing trend of emigration by high net worth individuals poses challenges to China’s economic vitality.
Global Trends in Millionaire Migration
Henley’s forecasts, based on inquiries and data from the first half of the year, indicate that globally, 122,000 affluent individuals are expected to migrate this year, surpassing the previous record set in 2019. East Asian clients have shown a significant surge in emigration inquiries following the relaxation of pandemic restrictions earlier this year, exceeding the peak figure of 2019 by 15%. These individuals seek improved mobility, greater visa-free access to key regions, enhanced healthcare options, and increased political stability.
Singapore and Hong Kong as Attractive Destinations
Singapore has emerged as a favored destination for Chinese wealth since Beijing implemented stringent COVID-19 measures, resulting in isolation for nearly three years and accelerating emigration of the super-rich in the past year. The inflow of wealth into Singapore has driven up housing prices and living costs. According to Henley & Partners, approximately 10,800 millionaires migrated to Singapore in 2022. Additionally, Hong Kong is expected to witness the emigration of 1,000 millionaires this year, potentially impeding the city’s efforts to attract wealthy individuals and establish itself as a wealth management and family office hub.
Shifting Migration Preferences and Increasing Demand
Denise Ng, Director of Henley & Partners Hong Kong, notes that high net worth individuals from Northern Asia are increasingly considering Europe as their relocation destination, while fewer are looking to move within Asia. The report highlights a 20% drop in applications for Asian migration programs. Overall, there has been a surge in demand, with a record number of investment migration program inquiries in the first quarter of the year.
The report also indicates a shift in wealthy individuals’ preferences, as they now prioritize relocating their families amid ongoing turmoil. India, surpassing China as the world’s most populous nation, is expected to witness the second-largest outflow of millionaires, albeit lower than in previous years, at 6,500. Meanwhile, Australia is projected to attract the largest net inflow of high net worth individuals, with 5,200 individuals expected to migrate, while Singapore is forecasted to receive a record-high net inflow of 3,200 wealthy individuals, according to the report.
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