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Exit plans for wealthy Chinese.

 Wealthy Chinese are initiating exit plans from their homeland as pessimism builds over the world’s second-largest economy under Xi Jinping and the ruling Chinese Communist party. David Lesperance, a Europe-based lawyer who has worked with rich families in Hong Kong and China, says Xi ruling beyond two terms is a tipping point for China’s business elite, who thrived for decades as the economy boomed. « I have already received three ‘proceed’ instructions from various ultra-high net worth Chinese business families to execute their fire escape plans,» said Lesperance. He added that Hong Kong, long a favoured destination for Chinese elite families, had become less attractive as Beijing increased control over the territory.

The number of family offices in Singapore jumped fivefold between 2017 and 2019, and almost doubled from 400 at the end of 2020 to 700 a year later, according to Citi Private Bank. Ryan Lin, director of Singapore-based Bayfront Law, said he was approached by five families during China’s party congress to establish a Singapore family office, three of which are proceeding. Lin, who has set up about 30 family offices in Singapore in the past year, said most Chinese hoped to relocate there, as well as move their money. Lesperance said many of his clients spent years preparing their exit, moving capital to offshore jurisdictions and arranging alternative residences and citizenships outside China for families.

China’s rich, he said, are not only worried about rumours of a wealth tax that would replace informal «common prosperity» donations. « The modern equivalent would be a private jet, a couple of passports and foreign bank accounts,» Lesperance said. The founder of a US real estate platform for rich Chinese said he was struggling to handle the flood of inquiries.

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  1. Nevaeh28 October 2022 at 22:54

    It's only a matter of time before most of China's wealthiest people have had enough of it and will leave the country for good. Singapore is a heaven for them right now, encouraging investments and offering a great place to live.

    ReplyDelete

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