On June 23, 2021, guests showed up at the J Hotel located in the Shanghai Tower.
Hector Retamar | AFP | Getty Images
The latest research shows that China, the world’s second largest economy and the second most populous country, will experience another massive outflow of millionaires this year.
According to the report of investment immigration consulting agency Henry Law FirmChina is expected to lose the most dollar millionaires to immigration this year than any other country.
According to the firm, 10,800 high-net-worth individuals will move out of China on a net basis in 2022, with another 13,500 expected to leave this year.
This is not a problem that started with the coronavirus pandemic, but it has been a problem for the past 10 years. In an accompanying report, Andrew Amoils, research director at global wealth intelligence firm New World Wealth, said China had seen the largest annual loss of millionaires over the past decade, leading to a slowdown in the country’s overall wealth growth. .
“The recent outflows may be more damaging than usual. The Chinese economy grew strongly from 2000 to 2017, but since then the country has seen negligible growth in wealth and millionaires (in dollar terms).”
other big losers
Second only to China, Henley & Partners forecasts that India will lose a net 6,500 millionaires this year, a net 1,000 fewer millionaires than will leave the country in 2022.
private wealth and family offices of Hourani Law Firm, in the same report.
Amoils stressed, however, that these exoduses should not be a concern because “India is producing far more new millionaires than it loses through immigration”.
Other Asian countries are also expected to see the skit leave their countries.
Hong Kong is expected to lose a net 1,000 millionaires this year, while South Korea and Japan may lose 800 and 300 respectively. Hong Kong residents left the city in droves last year due to Covid-19 restrictions and what they see as an erosion of democratic norms, reports show.
Russia is only expected to lose a net 3,000 millionaires this year, down sharply from 8,500 in 2022, despite the political turmoil and economic uncertainty caused by Moscow’s war on Ukraine.
Russia, which ranks fourth in Henley & Partners’ rankings behind the UK, is likely to lose a net 3,200 millionaires this year, double the loss the year before.
“Brexit has made the UK less hospitable and welcoming to high-net-worth individuals. It is now more difficult for them to move between the UK and EU countries,” said Trevor Williams, visiting professor at the University of Derby and former chief economist at Lloyds Bank. Commerce Department Secretary Trevor Williams said in the report.
“There is evidence that the UK’s share of inward investment in Europe has fallen since leaving the EU, while Germany and France have benefited.”
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Australia could overtake the United Arab Emirates this year as the country with the most net millionaires this year. Australia is expected to see a net influx of 5,200 millionaires, with the UAE coming in second with 4,500. Singapore came in third, with a net 3,200 millionaires buying property in the city-state.
Overall, the West remains an attractive destination for millionaires, with the US (2,100), Switzerland (1,800) and Canada (1,600) all in the top 10, the research shows.
Juerg Steffen, CEO of Henley & Partners, said: “The number of millionaire immigrants has grown steadily over the past decade, with global figures expected to be 122,000 in 2023 and 128,000 in 2024.”