Rich Chinese scrutinise investments like never before, with overseas funds seen at ‘grave risk’

Expectations of weak economic prospects over the coming few years, along with fears of Western sanctions, leave wealthy looking for a safe place to park their cash

Some affluent citizens are even leaving money in banks – marking the first time in a decade that bank deposits are a top-three investment play for China’s wealthy

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A recent survey found that wealthy mainland Chinese investors will be primarily looking to Hong Kong (pictured) for their overseas investments in the coming years. Photo: Jonathan Wong

Published: 11:00am, 13 Apr 2023Updated: 1:07pm, 13 Apr 2023

Last year was a tipping point for a number of wealthy Chinese individuals such as Billy Huang, who runs an investment conglomerate in southern China.

The Ukraine war, Western sanctions on Russian business, and spiralling US-China relations have pushed Huang to hold off on his overseas expansion plans for this year. He is also taking a cautious outlook on the domestic market in the near future, even though China has reopened its borders.

“I have consulted more than 100 professionals, asking what is worth investing in over the coming years and what should be avoided if economic prospects are weak,” Huang said.

Based on his research, he narrowed his focus to medical care and energy, while shying away from the markets for fast-moving consumer goods and maternal and childcare resources.

“If China-US relations continue to deteriorate and devolve into a new cold war, the money we Chinese put overseas, regardless of its whereabouts, is very likely to be put under grave risk,” Huang lamented. “Take a look at what has happened to Russian oligarchs.