Why rich, young Chinese are less likely to spend abroad than older generations
- Middle-class Chinese in their 20s and 30s are more focused on education, careers and building wealth at home, research shows
- Meanwhile, those in the same income bracket but aged 40 and above mainly pursue global asset allocation and overseas travel
Guangdong resident Stephen Yao used to take more than 20 overseas trips a year to buy properties for wealthy Chinese clients in popular tourist destinations like Kyoto, Bangkok, Pattaya and Kuala Lumpur.
But the coronavirus pandemic brought an abrupt halt to his business, with his last overseas trip in March 2020. Unable to travel abroad due to border closures, the 46 year old and his middle-aged clients left their overseas properties vacant or rented them at rock bottom prices.
Despite few signs of China loosening its travel restrictions, Yao is still hoping to restore his dream life: freedom to travel, global investment and retirement abroad – common aspirations for middle-class Chinese born in the 1970s.
“People born in the 1960s and 1970s are still eager to return to the pre-pandemic life, travelling and investing abroad, once the pandemic is over, but such an idea is waning among the younger generation,” said Yao.
Jay Li, who is in his 20s and runs an e-commerce business, spent 3 million yuan (US$470,000) decorating his 90-square-metre flat in Guangzhou.
“Luxurious home design and a modern art collection are more fun and they are a better means to store value,” he said. “Buying a 30-square-metre condo in a Southeast Asian country for 500,000-800,000 yuan does not sound cool at all to me.”