Bain & Co and China Merchant’s Bank Private Wealth Report 2011 found that the so-called high net worth individuals rose 19% in 2010 compared to 2009. Sadly, 60% of them are considering emigration or are already doing so, and 27% of those with 100 million yuan have already emigrated, and 47% of those are considering.
According to the Global Times:
There are three major reasons behind rich people’s immigration: a better education for children, safety of personal wealth and a preparation for retirement, the report showed.
“Safety of personal wealth” is probably the main motivation. The story I have been hearing is this: these folks emigrate to other places and invest in real estate in other places as a form of “political insurance”. Too many of these rich folks got their wealth because of their connections with officials, probably bribery and corruptions, and they don’t see their assets in China being “safe” in a sense that if they get caught, they will have nothing left. So it makes some sense for them to flee before it is too late.
This article originally appeared here: China Is Ageing, And The Rich Are Fleeing
Also sprach Analyst – World & China Economy, Global Finance, Real Estate
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