Chinese millionaires plan to leave in droves: Report

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#1
http://www.cnbc.com/id/102001188

Chinese millionaires plan to leave in droves: Report
Robert Frank | @robtfrank
2 Hours Ago
CNBC.com


Billy Hustace | Getty Images
Nearly half of Chinese millionaires plan to move out of the country in the next five years—a flight that could add to worries over the country's economy, as more money moves offshore rather than being invested or spent in China.

According to a study from Barclays and Ledbury Research, which polled more than 2,000 people worth $1.5 million or more from 17 countries, 47 percent of Chinese millionaires plan to emigrate, while another 20 percent said they don't know if they will move.

Read MoreTop cities for multimillionaire second homes
That's the highest rate of planned millionaire flight in the world, topping Qatar at 36 percent and Latin America at 34 percent.

The study supports a finding from Hurun Report earlier this year, which said 64 percent of Chinese millionaires have either emigrated or plan to emigrate.
When asked why they are leaving China, 78 percent of respondents in the Barclays and Ledbury study said they were seeking "better educational/employment opportunities" for their kids. Seventy-three percent said they were looking for "economic security" and 72 percent said they wanted a "desirable climate." Their top destinations are Hong Kong, Canada and the U.S.

Read MoreChina creates 40,000 millionaires

Countries are now competing fiercely to attract today's roving rich. While London, New York and Singapore have become global "hot spots," countries in Europe and the Caribbean have also opened up special visa programs for rich investors.

"There has been an explosion in second passports as a way for these high net worth individuals to achieve global mobility," Nicolas Rollason, head of business immigration at London-based law firm Kingsley Napley, said in the report. "If you look at the Russian and Chinese high net worth communities, having second passports and a residence that gives you access to a number of countries visa-free, it is very much seen as a badge of honor."

Read MoreCities with the most millionaires per capita
The Chinese rich aren't the only ones leaving. The study found that nearly half of today's global millionaires have lived in more than one country—and many more are planning to migrate in the next five years.

Most millionaire Americans who plan to migrate are going to Europe, the study found. The largest number of millionaires planning to leave Asia are bound for North America, while millionaire migrants from the Middle East are basically split between Europe and North America.

—By CNBC's Robert Frank
Reply
#2
Not only millionaires are leaving... capable companies are leaving as well... not much difference to the Japanese wave in the 80s but certainly more calculated as China companies plonked into stategic industries globally that will fortify Chinese influence in decades to come...

PUBLISHED SEPTEMBER 17, 2014
China's FDI drops even as outbound investments rise
The 112.1% increase in ODI is a dramatic contrast to the 14% y-o-y fall in FDI

China's outbound investment more than doubled year-on-year in August to US$12.62 billion, data showed on Tuesday, far outstripping foreign direct investment (FDI) into the country, which dropped to a new multi-year low - PHOTO: AFP
[BEIJING] China's outbound investment more than doubled year-on-year in August to US$12.62 billion, data showed on Tuesday, far outstripping foreign direct investment (FDI) into the country, which dropped to a new multi-year low.
China has been actively acquiring foreign assets, particularly energy and resources, to power its economy.
Beijing has encouraged companies to "go out" and make overseas acquisitions to gain market access and international experience, and officials have said overseas direct investment (ODI) could exceed FDI this year.
The 112.1 per cent increase in ODI announced by the commerce ministry was a dramatic contrast to the 14.0 per cent year-on-year fall in FDI, which dropped to US$7.20 billion. Both sets of figures exclude investment in financial sectors.
FDI was also less than July's US$7.81 billion, which was the lowest since July 2012.
Commerce ministry spokesman Shen Danyang denied any link to Beijing's multiple probes into foreign companies.
Chinese authorities have in recent months launched anti-monopoly, pricing and other inquiries into scores of foreign firms in sectors ranging from auto manufacturing and pharmaceuticals to baby milk.
The investigations have raised concerns among investors that Beijing is targeting overseas companies.
But Mr Shen denied any connection between the investigations and the fall in FDI. "They are not related," he said, declining to comment further.
For the first eight months of the year, China's ODI was up 15.3 per cent to US$65.17 billion.
In that period, investment into the European Union (EU) soared by 257.1 per cent, leaped 116.7 per cent into Japan, and jumped 73.3 per cent into Russia, the ministry said without giving totals.
It climbed 16.0 per cent into the US, reaching US$3.26 billion.
Ministry officials were unable to explain immediately the huge monthly increase.
Also in the first eight months, FDI was down 1.8 per cent year-on-year to US$78.34 billion.
It slumped 43.3 per cent from Japan - which is embroiled in territorial and historic rows with Beijing - to US$3.16 billion, fell 17.9 per cent from the EU to US$4.20 billion, and dropped 16.9 per cent from the US to US$2.08 billion.
But from South Korea - which has been enjoying closer diplomatic ties with China - it climbed 31.3 per cent to US$3.02 billion, and from Britain it rose 18.9 per cent to US$850 million.
China's economy expanded 7.7 per cent in 2013, the same as 2012 - the worst pace since 7.6 per cent in 1999.
Beijing's official growth target for this year is 7.5 per cent, also the same as in 2013, while gross domestic product grew 7.4 per cent in the first half of this year. - AFP
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)