As China's shift to a consumer economy progresses based on the urbanization of its agrarian 'poor' population, an odd thing is happening at the other end of the demographic wealth spectrum. As WSJ reports, nearly half of wealthy Chinese are planning to move to another country within the next five years, according to a new Barclays survey. The top reasons 47% of these individuals - with net worths over $1.5 billion - cite for fleeing China include educational and employment opportunities, economic security, and climate. Ironically, none mentioned 'running away from potential prosecution for graft'.
Nearly half of wealthy Chinese are planning to move to another country within the next five years, according to a new Barclays survey.
The survey, which questioned more than 2,000 high net-worth individuals with more than $1.5 billion in total net worth, found that 47% of Chinese respondents said they want to move, compared with a global average of 29%.
Singaporeans were the second-most eager to flee home, with 23% planning to relocate in five years, followed by 20% for the U.K. and 16% for Hong Kong. Indian and American rich are the least likely to move, with only 5% and 6% of respondents saying they would relocate.
The top reasons Chinese cite for moving abroad are better educational and employment opportunities for children (78%), economic security and desirable climate (73%), and better health care and social services (18%). Hong Kong is their top destination (30%), followed by Canada (23%).
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If the richest - and therefore 'smartest' if we are to believe the two are eqauted - are looking for leave China in such numbers, then why are US investors being piled in? And what do these wealthy people know that the urbanizers do not? For China's planners, the scent of capital flight is the scariest of all signals when trying to control a populace facing a real estate collapse and credit crisis (having been promised utopia)... that is why this is the scariest chart for China.
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It appears that not only is the domestic exodus beginniong but the foreign investment is collapsing.
- *CHINA'S AUG. FDI FALLS 14.0% FROM YEAR EARLIER (vs +0.8% YoY Exp.!)
This si the worst consecutive monthly FDI plunge since the crisis...