China sees biggest outflow of millionaires as economic uncertainties rise

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China sees biggest outflow of millionaires as economic uncertainties rise

According to the report, the exodus of high-net-worth individuals from China last year was primarily to countries like the U.S., Canada, and Singapore, with the U.S. being the top destination for these individuals. The report highlights that these wealthy individuals, defined as those with at least $1 million in assets, are concerned about China's economic direction and political tensions, prompting them to seek opportunities elsewhere.

The outflow of rich Chinese citizens is expected to have a significant impact on China's already fragile economy, especially amidst a prolonged property crisis that has affected both large developers and local governments burdened with debt. Despite obstacles posed by the COVID-19 pandemic, wealthy Chinese individuals have resumed their emigration plans after travel restrictions were lifted, with the U.S. being a preferred destination for many.

The report also mentions an increasing interest from wealthy Chinese individuals in moving to countries like Japan, attracted by the appealing lifestyle offerings, safety, and quality of life. Singapore, traditionally popular among rich Chinese for its proximity to China and cultural ties, has tightened scrutiny on Chinese wealth inflow following a money laundering scandal. Additionally, the United Arab Emirates remains an attractive destination for the world's affluent due to its tax benefits and luxurious lifestyle, with the provision of "golden visas" for investors.