Barclays: Almost half of China's rich want to leave

[Romero]

A report out from venerable British bank Barclays released Monday said almost half of its rich clientele plan on leaving the country in the next five years, more than millionaires from any other country.



"The wealthy are increasingly being motivated to move between countries in order to fulfill their international career aspirations, seize financial opportunities and ensure a better quality education for their children," Barclays said in the report, which polls more than 2,000 of the bank's customers around the world, each with a net worth of at least $1.5 million of investable assets.



47 per cent of the firm's wealthy Chinese customers said they planned on leaving the country permanently in the next five years. That was well ahead of rates seen in the U.S. and Japan, where six and seven per cent, respectively, said they were planning on leaving soon.



Canada is among the most desirable places they say they'd like to go. Among Chinese who were planning an exit, Canada was the second-most popular destination, favoured by 23 per cent of people. That figure was just behind the 30 per cent who said they planned to go to Hong Kong, and just ahead of the 21 per cent who said they planned to go live in the U.S.



Generally speaking, cities in North America and Europe are a top destination choice for the world's wealthiest — especially English-speaking locations like the U.S., Canada, New Zealand, Australia, the UK, and then Singapore and Hong Kong.



http://www.cbc.ca/news/business/almost-half-of-china-s-rich-want-to-leave-the-country-barclays-says-1.2766823">//http://www.cbc.ca/news/business/almost-half-of-china-s-rich-want-to-leave-the-country-barclays-says-1.2766823

[Anonymous]

^My uncle's family are among them. They are really concerned about the value of their financial assets due to a lack of faith in the Chinese financial system. He is 55, so if he cannot get permanent residence abroad, he'll at least protect what he has by investing it there.

Just why are they all heading for the exits at the same time?



It could be simply cleaner air, given the pollution gripping many cities across China. Or perhaps some could be feeling twitchy as President Xi Jinping continues his year-long anti-corruption campaign.



But there is also the possibility this is at least partly a financial decision. They don't want to hang around as the Chinese economy finally goes through a de-leveraging process and perhaps think it's an opportune time to be getting out of yuan USDCNY, -0.15%



Taking a negative view on the yuan would be a reversal of recent years, during which continued yuan appreciation became embedded in financial markets. Thanks to Beijing's policy-delivered exchange rate, the yuan has been one of the world's best-performing currencies.

http://www.marketwatch.com/story/rich-chinese-line-up-to-leave-china-2014-02-09">http://www.marketwatch.com/story/rich-c ... 2014-02-09">http://www.marketwatch.com/story/rich-chinese-line-up-to-leave-china-2014-02-09



In most countries, the magnitude of worries over financial distress and the growth slowdown currently facing China would be expected to show up in the exchange rate. But when you have a largely pegged currency and capital controls, it is easier to conceal problems.



This means it is prudent to watch for other signs of distress emerging in the financial system. To the recent jump in interbank rates and solvency problems with shadow-bank wealth-management products, perhaps we can now add a surge in the numbers of Chinese people itching to leave?



In general, there is still a degree of calm about these issues, as the usual response to concerns is that Beijing always finds a way out. But one way to read this emigration surge is a vote of no confidence by China's new wealthy.



But authorities have brought this issue to the fore as they proceed with various measures to internationalize the Chinese currency.



Coincidently, at a Chinese New Year lunch last week, one of the diners said he had this very discussion in Shanghai with colleagues the previous week, and all 10 of them said they would shift their savings to U.S. dollars if they were they free to do so.



If this small sample is at all representative, it underlines why expectations remain that Beijing will be highly cautious in opening its capital account. It might also explain the slow pace of progress so far with the much-hyped Shanghai Free-Trade Zone.

http://www.marketwatch.com/story/rich-chinese-line-up-to-leave-china-2014-02-09">http://www.marketwatch.com/story/rich-c ... 2014-02-09">http://www.marketwatch.com/story/rich-chinese-line-up-to-leave-china-2014-02-09

[Big Wave Dave]

^My uncle's family are among them. They are really concerned about the value of their financial assets due to a lack of faith in the Chinese financial system. He is 55, so if he cannot get permanent residence abroad, he'll at least protect what he has by investing it there.

Just why are they all heading for the exits at the same time?



It could be simply cleaner air, given the pollution gripping many cities across China. Or perhaps some could be feeling twitchy as President Xi Jinping continues his year-long anti-corruption campaign.



But there is also the possibility this is at least partly a financial decision. They don't want to hang around as the Chinese economy finally goes through a de-leveraging process and perhaps think it's an opportune time to be getting out of yuan USDCNY, -0.15%



Taking a negative view on the yuan would be a reversal of recent years, during which continued yuan appreciation became embedded in financial markets. Thanks to Beijing's policy-delivered exchange rate, the yuan has been one of the world's best-performing currencies.

http://www.marketwatch.com/story/rich-chinese-line-up-to-leave-china-2014-02-09">http://www.marketwatch.com/story/rich-c ... 2014-02-09">http://www.marketwatch.com/story/rich-chinese-line-up-to-leave-china-2014-02-09



In most countries, the magnitude of worries over financial distress and the growth slowdown currently facing China would be expected to show up in the exchange rate. But when you have a largely pegged currency and capital controls, it is easier to conceal problems.



This means it is prudent to watch for other signs of distress emerging in the financial system. To the recent jump in interbank rates and solvency problems with shadow-bank wealth-management products, perhaps we can now add a surge in the numbers of Chinese people itching to leave?



In general, there is still a degree of calm about these issues, as the usual response to concerns is that Beijing always finds a way out. But one way to read this emigration surge is a vote of no confidence by China's new wealthy.



But authorities have brought this issue to the fore as they proceed with various measures to internationalize the Chinese currency.



Coincidently, at a Chinese New Year lunch last week, one of the diners said he had this very discussion in Shanghai with colleagues the previous week, and all 10 of them said they would shift their savings to U.S. dollars if they were they free to do so.



If this small sample is at all representative, it underlines why expectations remain that Beijing will be highly cautious in opening its capital account. It might also explain the slow pace of progress so far with the much-hyped Shanghai Free-Trade Zone.

http://www.marketwatch.com/story/rich-chinese-line-up-to-leave-china-2014-02-09">http://www.marketwatch.com/story/rich-c ... 2014-02-09">http://www.marketwatch.com/story/rich-chinese-line-up-to-leave-china-2014-02-09

Chinese investors are snatching up properties all over South East Asia. In the past, Koreans were the biggest investors, but no doubt the Chinese have topped them by now.

[Anonymous]

^My uncle's family are among them. They are really concerned about the value of their financial assets due to a lack of faith in the Chinese financial system. He is 55, so if he cannot get permanent residence abroad, he'll at least protect what he has by investing it there.

Just why are they all heading for the exits at the same time?



It could be simply cleaner air, given the pollution gripping many cities across China. Or perhaps some could be feeling twitchy as President Xi Jinping continues his year-long anti-corruption campaign.



But there is also the possibility this is at least partly a financial decision. They don't want to hang around as the Chinese economy finally goes through a de-leveraging process and perhaps think it's an opportune time to be getting out of yuan USDCNY, -0.15%



Taking a negative view on the yuan would be a reversal of recent years, during which continued yuan appreciation became embedded in financial markets. Thanks to Beijing's policy-delivered exchange rate, the yuan has been one of the world's best-performing currencies.

http://www.marketwatch.com/story/rich-chinese-line-up-to-leave-china-2014-02-09">http://www.marketwatch.com/story/rich-c ... 2014-02-09">http://www.marketwatch.com/story/rich-chinese-line-up-to-leave-china-2014-02-09



In most countries, the magnitude of worries over financial distress and the growth slowdown currently facing China would be expected to show up in the exchange rate. But when you have a largely pegged currency and capital controls, it is easier to conceal problems.



This means it is prudent to watch for other signs of distress emerging in the financial system. To the recent jump in interbank rates and solvency problems with shadow-bank wealth-management products, perhaps we can now add a surge in the numbers of Chinese people itching to leave?



In general, there is still a degree of calm about these issues, as the usual response to concerns is that Beijing always finds a way out. But one way to read this emigration surge is a vote of no confidence by China's new wealthy.



But authorities have brought this issue to the fore as they proceed with various measures to internationalize the Chinese currency.



Coincidently, at a Chinese New Year lunch last week, one of the diners said he had this very discussion in Shanghai with colleagues the previous week, and all 10 of them said they would shift their savings to U.S. dollars if they were they free to do so.



If this small sample is at all representative, it underlines why expectations remain that Beijing will be highly cautious in opening its capital account. It might also explain the slow pace of progress so far with the much-hyped Shanghai Free-Trade Zone.

http://www.marketwatch.com/story/rich-chinese-line-up-to-leave-china-2014-02-09">http://www.marketwatch.com/story/rich-c ... 2014-02-09">http://www.marketwatch.com/story/rich-chinese-line-up-to-leave-china-2014-02-09

Chinese investors are snatching up properties all over South East Asia. In the past, Koreans were the biggest investors, but no doubt the Chinese have topped them by now.

Chinese are the world's biggest traveller's now I believe. Biggest are among the biggest foreign investors in Africa's resource wealth too.



With $3+ trillion in foreign exchange reserves and a growing need for resources to power its growth, China has been ramping up investments around the world.

[Anonymous]

Eventually mainlanders will be able to get residency visas for Taiwan..



As it stands people with residency in cities like Shanghai can get individual tourist visas already.

 ac_unsure

[Gary Oak]

Most if not all of these rich chinese not only support tongs FAN QING FU MING activites and are members themselves.

[Anonymous]

Most if not all of these rich chinese not only support tongs FAN QING FU MING activites and are members themselves.

http://ourbrainhurtsalot.com/wp-content/uploads/2012/06/jethro2btull252cthick2breedicioooo-672x372.jpg">

[Gary Oak]

if you don't know that what I am saying is true then you are definately thisck as a brick.