China’s Richest Moving Money Overseas through Investment Immigration

On April 20, 2011, China Merchants Bank (CMB), jointly with Bain & Company, issued the 2011 China Private Wealth Report. The report stated that half a million in China have investment assets exceeding 10 million yuan (US$ 1.5 million). These individuals have demonstrated a declining willingness to put their money in real estate. The proportion of real estate in their total investment portfolio dropped from 17.6% in 2009 to 13.7% in 2011. Over 90% of the interviewees expressed a lack of interest in additional investment in housing, while 50% are considering gradually withdrawing from this sector. On the other hand, the report shows a stronger desire among the richest to leave China through investment immigration. About 60 percent of these millionaires (with assets over 10 million yuan) either have completed or are considering investment immigration. Among the billionaires (assets over 100 million yuan or US$ 15 million), 27 percent have already completed the process of investment immigration.

Chinese individuals’ overseas assets have increased rapidly in recent years: from 2008 to 2010, the annual average growth approached 100%. At the same time, the population of overseas emigrants through investment also showed a rapid increase. Over the past five years, the number of green card holders in the U.S., resulting from investment, registered an annual average growth of 73%.