The migration patterns of the ultra-high net worth indicate that outflows from the mainland are expected to far outstrip the rest of the world. The main beneficiaries? Australia, the UAE, and Singapore.
It was not all that long ago that stories abounded about how China was creating billionaires at a feverish click. By some tokens, new ones were being stamped out weekly (collated Google search) - a faster pace than any other country in the world.
But now a map compiled by the Visual Capitalist (registration required) using data from Henley & Partners’ Private Wealth Migration report seems to reveal another truth. Once you have made it on the mainland, you seem to want to get out.
That is because about 13,500 high-net-worth individuals (or those having more than $1 million) are expected to leave China this year, more than double that of second-placed India, which is expected to lose about 6,500. Moreover, if you include the 1,000 seen exiting Hong Kong, which itself makes sixth place in this so-called bottom 10 ranking, the situation becomes even more stark.
Unpopular Policies
Although this is something that finews.asia (collated search results) has commented on extensively in recent years, particularly during China’s highly unpopular lockdown policies during the pandemic, it is the first time that the 2023 country-by-country forecasts have been published on a map so unambiguously and transparently.
Otherwise, several countries were on the list where the exit reasons seemed to be obvious. The UK, which placed third with 3,200 expected emigres, is still experiencing the effects of Brexit.
In Russia, where 3,000 are seen heading overseas, the impact of the Ukraine war and the manifold sanctions and trade restrictions are making themselves felt.
Going to Australia
But all this poses another question. Where is everyone going? Australia, or at least so it seems. About 5,200 HNWIs are expected to settle down under, followed by the United Arab Emirates (UAE), which is seen experiencing an influx of 4,500.
Singapore comes in third place with 3,200. Visual Capital maintains the city-state is so attractive to HNWIs given it is currently the most economically free market in the world.
Related to that, finews.asia has extensively discussed the government’s numerous measures to attract family offices, something that in recent weeks seems to have become somewhat overshadowed by the large-scale money laundering case that has been making headlines in the city-state. That is likely to become something of a delicate balancing act, which is something finews.asia has also commented on.
Greek Outlier
In fourth place, we have the US, which is expected to have 2,100 individuals heading there, followed closely by Switzerland, where the influx is forecast at 1,800, with Canada, Greece, France, Portugal, and New Zealand rounding up the top ten.
The Visual Capitalist pointed out Greece as somewhat of an outlier given its historic economic challenges. Still, it reasoned that the country’s golden visa scheme requiring a relatively modest 250,000-euro real estate investment in exchange for a sought-after EU passport could potentially be a compelling reason.
Whatever the case, the millionaires and billionaires of the world are on the move again, Overall, Henley & anticipates 122,000 HNWIs moving to a new country this year and 128,000 in 2024, a strong recovery after the lows of 12,000 in 2020 and 25,000 seen during the pandemic.
