A new research?report?released earlier this week revealed that the world¡¯s second-largest economy,?China,?is expected to witness the biggest exodus of millionaires this year.
The country with the world¡¯s second-highest population is?expected to lose the world's largest number of?dollar millionaires?this year due to migration, when compared to any other country.
Data from the Henley report showed that a net 10,800 high-net-worth individuals migrated out of China in 2022, and another net 13,500 are expected to leave this year. The new forecast regarding China for this year comes amid subdued economic conditions, lingering fallout from the pandemic, and poor relations with some of its major trading partners.?And this is?not an issue that started with the coronavirus pandemic, as the exodus has been going on for the last 10 years.
China has seen the biggest departure of millionaires each year for the past decade, causing general wealth growth in the country to slow down, Andrew Amoils, head of research at global wealth intelligence firm New World Wealth, which helped create the report, said in an accompanying statement, as per CNBC's report.
¡°The recent outflows could be more damaging than usual. China¡¯s economy grew strongly from 2000 to 2017, but wealth and millionaire growth in the country has been negligible since then (when measured in U.S.-dollar terms).¡±
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Bill Liu, an agent from Guangdong province who advises wealthy Chinese on immigration and buying property overseas, expects 2023 and 2024 to be ¡°big¡± for immigration.?Many of Liu¡¯s clients say they are disappointed with the recent economic performance following China¡¯s sudden end to its strict Covid controls, and are concerned with the value of Chinese assets, as per South China Morning Post report.
¡°Among the families that consulted us before, about 1 out of 10 eventually [left China], but now the ratio has risen to two or three [out of 10], doubling what we had before,¡± Liu said, adding that the immigration-consulting sector has become more competitive of late. The visa-application process typically costs wealthy individuals at least tens of thousands of dollars, depending on various factors, according to widely available online quotes.
The investment residency programmes in Europe are still very popular, and the rich in China are treating them as a ticket on a rescue boat. Their wealth is still concentrated in China. In the event of a worsening situation, they have one more option," Liu added.
The US¡¯ start-up and employment visa programmes, including "national interest waivers" (NIWs) under the green-card application process, are also popular among?Chinese?tech, medical, and academic professionals and researchers, especially those impacted by the downturn in China¡¯s tech sector, Liu said.
"They pay attention to opportunities for skilled immigration from?Singapore?and the United States," Liu explained, adding that his goal is to accept 30¨C40 NIW and "extraordinary ability" visa applications this year.
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In March this year, billionaire?Jack Ma returned to China after disappearing from the public eye for more than a year. His overseas stay was viewed in the?industry as a reflection of the sober mood of?Alibaba's private businesses, which sources said eventually spurred the billionaire to reach out. Ma's re-emergence in public after more than a year is said to offer support for the government's softening tone towards the private sector as leaders try to shore up an economy battered by three years of COVID-19 curbs.??
Even last month, another wealth report produced by New York-based Altrata, citing data from its Wealth-X division, also showed that China saw a decline in its billionaire population by 11 percent, to 357. And the aggregate value of their wealth diminished by 9.3 percent, to US$1.3 trillion.
Sluggish economic growth, a slump in the real estate market, and a crackdown on the technology industry had weighed on the values of Chinese assets, it said.
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