China's rich seek safety in gold, emigration

By Yan Pei
0 CommentsPrint E-mail, April 21, 2011
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China's rich seek safety in gold, emigration



Chinese multimillionaires are backing off domestic property market investments in favor of gold and emigration, says a report released by China Merchants Bank and Bain & Company on Wednesday.

The demand for real estate trusts, private funds, gold and private equity (PE) has increased significantly among China's rich during the past two years as rising inflation, a bumpy stock market and new real estate regulations have made alternative investments less attractive. By the end of last year, total net investment in gold had surged 80 percent from a year earlier. The outstanding volume of PE products also rose by 30 percent during this period. Traditional investments such as cash and deposits, stocks, real estate and mutual funds saw a major decline over the last two years. Such assets now only account for 70 percent of total investment, down from 80 percent in early 2009.

The report also found increasing interest in investment immigration, a form of temporary or permanent residence that some countries, such as the U.S. and Canada, give to foreign citizens when they invest a large sum of money and create jobs, particularly in areas with high unemployment. Nearly 60 percent of all HNWIs surveyed had successfully acquired an investment immigration visa or were considering pursuing one. About 27 percent of China's billionaires - those with investable assets exceeding 100 million yuan - had emigrated.

According to the report, the number of Chinese high net worth individuals (HNWI) - those with at least 10 million yuan in investable assets - reached 500,000 in 2010 and is expected to top 590,000 this year. South China's Guangdong province has the largest number of HNWIs, about 70,000 or 15 percent of all HNWIs in China. Shanghai and Beijing took second and third with 47,000 and 44,000 multi-millionaires respectively.









China's business press carried the story above on Thursday. has not checked the stories and does not vouch for their accuracy.


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