Guests are seen in the J Hotel located in the Shanghai Tower, in Shanghai on June 23, 2021.
Hector Retamal | Afp | Getty Images
China, possessing the world’s second-largest economy and the second-highest population, is predicted to witness a significant outflow of millionaires this year, according to groundbreaking research.
Henley & Partners, an investment migration consultancy, released a report stating that China will experience the highest number of millionaire departures due to migration in comparison to any other country.
Data from the consultancy reveals that in 2022, a net total of 10,800 high-net-worth individuals migrated out of China, with another net total of 13,500 expected to leave this year.
Andrew Amoils, head of research at New World Wealth, a global wealth intelligence firm that contributed to the report, emphasizes that this ongoing issue started before the onset of the coronavirus pandemic. He states that China has been witnessing the largest number of millionaire departures annually for the past decade, resulting in a slowdown of overall wealth growth in the country.
Amoils further explains, “The recent outflows could be more damaging than usual. China’s economy grew strongly from 2000 to 2017, but wealth and millionaire growth in the country has been negligible since then (when measured in U.S. dollar terms).”
Other countries facing significant losses
Following China, India is projected to lose a net total of 6,500 millionaires this year, a decrease of 1,000 from the previous year.
Sunita Singh-Dalal, a partner at law firm Hourani, attributes this trend to prohibitive tax legislation and complicated rules relating to outbound remittances.
While Russia faces political unrest and economic uncertainty due to its conflict with Ukraine, it is estimated to lose a net total of 3,000 millionaires this year, a significant drop from the 8,500 lost in 2022.
Henley & Partners ranks the United Kingdom as the fourth country expected to experience a notable outflow of millionaires, with a projected loss of 3,200 this year, double the number from the previous year. Trevor Williams, a visiting professor at the University of Derby, attributes this decrease to Brexit, making the UK less attractive to high-net-worth individuals.
Countries of interest
In terms of countries attracting millionaires, Australia is expected to surpass the United Arab Emirates this year, with a projected net inflow of 5,200 millionaires. The UAE follows closely with a net inflow of 4,500 millionaires, while Singapore ranks third, expecting a net inflow of 3,200 millionaires.
The research highlights that Western nations remain attractive destinations for millionaires, with the United States (2,100), Switzerland (1,800), and Canada (1,600) securing spots in the top 10.
Juerg Steffen, CEO of Henley & Partners, asserts that there has been a continuous increase in millionaire migration over the past decade, with global figures for 2023 and 2024 predicted to be 122,000 and 128,000, respectively.
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