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THE NEW CLASS OF CHINESE RICH ARE FLEEING THEIR COUNTRY—WITH THEIR FORTUNES

Tuesday December 10th, 2013

In a trend that’s definitely impacted global property markets, the new class of millionaires are making their money in China, but investing it overseas. And many are following their money.

It’s one of the largest and most rapid wealth migrations of our time according to CNBC with hundreds of billions of dollars, and waves of millionaires flowing out of China to overseas destinations.

According to WealthInsight, the Chinese wealthy now have about $658 billion stashed in offshore assets.

Boston Consulting Group puts the number lower, at around $450 billion, but says offshore investments are expected to double in the next three years.

A study from Bain Consulting found that half of China’s ultrawealthy—those with $16 million or more in wealth—now have investments overseas.

And it’s not just the money that’s exiting the country. The wealthy are increasingly following their money overseas.

A study by Hurun and Bank of China found that more than half of China’s millionaires are considering emigrating or have already taken steps to move overseas.

Many experts say that the wealthy are moving to protect their wealth, their health and their families. With China increasingly cracking down on ill-gotten gains and corruption, many of the politically connected wealthy are looking for safer havens abroad.

They are also looking for better environments for their children—with better schools and cleaner air.

Wealthy Chinese buyers purchased more than $8 billion worth of residential real estate in the U.S. in the 12 months ended in March, according to the National Association of Realtors. China’s share of foreign-purchased residential real estate has jumped 50 percent since 2011.

Source: CNBC

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