China millionaire exodus is largest in the world

Staff reporter

China is expected to see a net outflow of 13,500 high-net-worth individuals in 2023, while Hong Kong will have an outflow of about 1,000, according to the 2023 Henley Private Wealth Migration Report.

The report features the latest net inflows and outflows of dollar millionaires - those with investable wealth of US$1 million (HK$7.8 million) or more - as projected by global wealth intelligence firm New World Wealth.

China is projected to have the highest net loss of HNWIs this year. India follows with an outflow of 6,500 individuals and the UK ranks third with a net loss of 3,200 individuals.

China has consistently experienced the highest annual outflow of dollar millionaires due to migration for the past decade, said the report.

The deceleration of overall wealth growth in China in recent years suggests that the current outflows of HNWIs could have a more significant impact than in previous instances, says Andrew Amoils, head of research at New World Wealth.

In recent years, the policy of "common prosperity" in China has led to an increasing number of entrepreneurs seeking more favorable environments like Singapore or establishing contingency plans. Additionally, previous Covid-19 restrictions provided further motivation for the wealthy to consider living abroad.

Hong Kong is expected to see an outflow of about 1,000 HNWI - less than half of the actual net outflow in 2022.

Meanwhile, the UK is projected to experience a net outflow of 3,200 millionaires in 2023, a significant increase from the previous year's net exodus of 1,600 millionaires, according to previous reports.

The combination of Brexit and the policy change to eliminate permanent non-domiciled taxpayer status has made the UK less appealing for HNWIs, said former chief economist at Lloyds Bank Commercial Trevor Williams.

Australia is projected to surpass the United Arab Emirates and become the leading destination for attracting over 5,000 HNWIs this year.

Singapore follows in third, expecting around 3,200 HNWI inflows.

The attractiveness of the US as a destination for migrating millionaires has decreased, partly due to the potential for higher taxes and the impact of Covid-19.

While the country still has a projected net inflow of 2,100 HNWIs for 2023, it marks a significant decline from 2019 which saw a net inflow of 10,800 millionaires.