Chinese millionaires are emigrating in waves overseas to escape the country’s strict tax system and deteriorating living environment, with the latest stock-market crash set to further accelerate their departure.
China’s volatile stock markets have been in a slump since mid-June, despite the Chinese government’s best efforts to revive the markets. The slump is showing no signs of slowing down, with Chinese shares tumbling by more than 8% earlier this week to record their largest one-day drop since 2007.
With China already the world’s number one source of migrant millionaires, experts believe the latest stock market crisis will cause a sharp increase in millionaire investors leaving China to invest elsewhere. In contrast to China, foreign markets rebounding from recession are seen to provide profitable investment opportunities, with an investment environment free from corruption, patronage and government control.
According to a report by consultancy firm New World Wealth, China has had a net outflow of 91,000 millionaires over the past 14 years, making it the world’s top source of migrant millionaires, ahead of India and France.
To date the main reasons for the Chinese exodus have included heavy smog, a lack of clean water and the numerous food safety scandals that plague China. Now it seems economic crisis can be added to that list.
According to New World Wealth, the most popular destinations for Chinese migrant millionaires are the United States, Hong Kong, Singapore and the United Kingdom.
Source: wantchinatimes.com