A new survey clear shows that considering moving overseas, and with the U.S. remaining their favorite destination, half of Chinese millionaires are considering moving out of the country.
According to a survey from Hurun Report in association with Visas Consulting Group, at least half of the people surveyed either plan to or are considering moving abroad among Chinese millionaires with a net worth of more than $1.5 million. And resulting in helping demand and prices in certain real estate markets — especially in the U.S. is the flow of wealthy Chinese and Chinese fortunes into U.S. homes and buildings, and according to suggestions made by the survey, this trend is likely to continue in the near future.
The report further suggests that the most popular destination for wealthy Chinese moving their families and fortunes abroad, is still the United States. While the U.K., which earlier had ranked second but now ranks third as the most favored destination for wealthy Chinese, Canada ranks second and has overtaking the U.K. as the destination of choice. In the fourth place is Australia.
Within the U.S., while Seattle ranks second followed by San Francisco, the favorite destination city for wealthy Chinese who want to or have moved into the U.S. is Los Angeles. New York ranked fourth.
Education was the top reason, followed by the “living environment”, said the millionaires who were surveyed when they were asked to state their main reasons for choosing to move abroad.
“Education and pollution are driving China’s rich to emigrate,” said Rupert Hoogewerf, chairman and chief researcher of Hurun Report. “If China can solve these issues, then the primary incentive to emigrate will have been taken away.”
Apart from this, also driving many rich Chinese — and their money — abroad, is the fear of a falling Chinese currency. Up from 50 percent last year, a total of 84 percent of Chinese millionaires are concerned about the devaluation of the yuan. Property bubbles in China, foreign exchange control and the exchange rate of the dollar, are among the issues that have made half of the Chinese wealthy worried.
The EB-5 program of the U.S. is a favorite policy of wealthy Chinese that allows them a path to citizenship in the U.S. in exchange for an investment in property of $500,000 and so far in his Presidency, the Trump administration’s restrictions on immigration have not touched the EB-5 program. However citing waiting times as the biggest hindrance to overseas immigration were 27 percent of wealthy Chinese who were surveyed.
While just a handful (22 per cent) said that China’s “high-speed development will continue and 44 percent said it will slow down, an overwhelming number, over 60 percent of wealthy Chinese are “optimistic” about China’s economic development, as suggested by the survey.
(Adapted from CNBC)