Number of high net worth individuals considering emigration down
About 37 percent of high net worth individuals are currently considering emigration, a 10 percent drop compared with last year, a Hurun study shows, with the United States remaining the top choice of emigration destination.
As many as 90 percent of those considering emigration intend to live in China after retirement, while the size of investment in overseas real estate is expected to increase 50 percent over the next three years.
The survey was conducted between March and June this year among 224 Chinese high net worth individuals with an average wealth of US$4.5 million, including those who have already emigrated, those that are in the process of application, and those who intend to do so in the future.
At the same time, various domestic policies, such as increasingly strict foreign exchange controls and property purchase restrictions in first-tier cities, have also stimulated overseas investment among domestic high net worth individuals.
The United States remains the most preferred destination for emigrant investment, followed by Canada and Australia, while emerging emigration destinations include Ireland.
"Education quality" remains the biggest reason for emigration, followed by environment and food safety, while health care and social welfare were also noted as major concerns.
As many as 70 percent of respondents already own overseas assets, which are mostly properties, and they aim to increase their overseas assets to account for 25 percent of their total wealth compared to about 11 percent at the current level.
Foreign exchange deposits and real estate are the most popular overseas investment options, which will remain the same over the next three years, the study shows. Insurance and standard financial products would gradually pick up over the next few years, while art investment will lose its appeal.
Those who make outbound investments are also becoming more cautious, with "spreading investment risk" cited as the major concern, followed by "children's education" and "emigration demands."