wolfstreet.com / by Wolf Richter / October 31st, 2016
To get “one third of their wealth overseas” and out of harm’s way.
The systematically depreciating yuan and the house price bubbles in Chinese cities have made the elite nervous. Capital flight has become a priority. Dodging government limits on capital flight has turned into an art. And buying properties overseas is the modus operandi to get their wealth out of harm’s way. The numbers are staggering:
60% of high net-worth individuals (HNWI) in China are planning to buy real estate in other countries over the next three years, with the target of moving one-third of their wealth overseas, according to an annual survey, conducted by Hurun Research Institute and Visas Consulting Group.
“More than half of the HNWI are concerned about the depreciation of the yuan, with other prominent concerns including the US dollar exchange rate and overseas asset management,” the report found.
Rupert Hoogewerf, Hurun Report Chairman and Chief Researcher added, “Worries about the depreciation of the yuan and housing bubbles in major Chinese cities are pushing Chinese HNWIs to invest their money overseas.”
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