Why are fewer wealthy Chinese likely to emigrate this year?
Report cites appeal of improved business environment, while growing uncertainty surrounding overseas study is also set to play a role
The number of wealthy mainland Chinese choosing to emigrate is projected to drop to a 10-year low this year thanks to the country’s improved business environment and its growing appeal to tech entrepreneurs, according to a report by a London-based advisory firm.
Henley & Partners’ annual wealth migration report also said that Hong Kong is starting to see steady inflows of millionaire migrants from the rest of Asia, with an anticipated net inflow of 800 this year, including many executives from fast-growing hi-tech companies in neighbouring Shenzhen.
A record 142,000 high-net-worth individuals – people with more than US$1 million in investible wealth – are expected to relocate internationally this year, according to the report, which was released on Tuesday.
It said the net outflow of mainland Chinese millionaires would drop to 7,800 – down from 15,200 last year and 13,800 in 2023 – ending the country’s decade-long run as the world’s leading source of wantaway wealthy.
The United Kingdom is set to have the largest net outflow of any country, losing 16,500 millionaires this year, the report said. Other European countries such as France, Spain and Germany are likely to be other major sources of outflow, it added.
The rise of Chinese tech hubs such as Shenzhen and Hangzhou, alongside rapid growth in the private banking, healthcare and entertainment industries, is giving mainland millionaires new reasons to stay, Henley & Partners said.
An emigration consultant and a wealthy Chinese mother said another major reason for the expected reduction in the outflow of mainland millionaires – likely to be the lowest since the Covid-19 pandemic according to the Henley & Partners report – was the growing uncertainty facing Chinese students studying abroad.