Emigrating mainland Chinese and Hongkongers could take combined wealth of US$65 billion with them, consultancy says
- Consultancy Henley & Partners predicts that 10,000 high-net-worth individuals will leave mainland China and 3,000 will depart Hong Kong this year
- The trend is likely to add to the woes of an already slumping property market that has been battered by the Covid-19 pandemic, agents said
Mainland China and Hong Kong could lose combined wealth of up to US$65 billion this year as more high-net-worth individuals (HNWIs) eye relocation amid tough Covid-19 restrictions and political uncertainties, according to Henley & Partners.
That would put 2022 second only to 2019, when departing millionaires worth US$100 billion left mainland China and Hong Kong. The trend is likely to add woes to an already slumping property market, which has been battered by the Covid-19 pandemic, agents said.
With average wealth of US$5 million, 13,000 HNWIs departing translates to an outflow of as much as US$65 billion in wealth, should they decide to take all their assets with them.
China is second only to the Russian Federation, which has been subject to tough sanctions owing to its invasion of Ukraine, in terms of losing millionaires. Hong Kong came in fourth in Henley’s list, following India.
“Recent turmoil is causing this shift,” said Dominic Volek, group head of private clients at Henley. “More investors are considering relocating their families to other countries for a range of reasons, from safety and security, to education and healthcare, to climate resilience and even crypto-friendliness.”