Daily Management Review

China Will Experience The Greatest Outflow Of Millionaires This Year, Study Report Shows


China Will Experience The Greatest Outflow Of Millionaires This Year, Study Report Shows
According to new data, China, which has the second-largest economy and population in the world, will once again have the greatest migration of billionaires this year.
China is predicted to lose the most billionaires this year owing to migration, more than any other nation, according to a report by investment migration consultancy Henley & Partners.
According to data from the company, a net 10,800 high-net-worth individuals left China in 2022, and a further net 13,500 are anticipated to do so this year.
The coronavirus pandemic did not cause this problem, which has existed for the past ten years. According to Andrew Amoils, head of research at global wealth intelligence firm New World Wealth, which contributed to the report, China has had the largest exodus of millionaires each year for the past ten years, slowing down overall wealth development in the nation.
“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).”
India is expected to lose a net 6,500 millionaires this year, ranking second only to China, down from a net 1,000 millionaires in 2022.
“Prohibitive tax legislation coupled with convoluted, complex rules relating to outbound remittances that are open to misinterpretation and abuse, are but a few issues that have triggered the trend of investment migration from India,” said Sunita Singh-Dalal, partner of private wealth and family offices at law firm Hourani, in the same report.
However, Amoils emphasised that these emigrations shouldn't be of concern because "India produces far more new millionaires than it loses to migration."
Millionaires are predicted to depart from other Asian countries as well.
This year, there could be a net loss of 1,000 millionaires in Hong Kong, 800 in South Korea, and 300 in Japan. According to reports, Hong Kong citizens fled the city in large numbers last year as a result of COVID-19 limitations and what they perceive to be a weakening of democratic principles.
Even if Moscow's war on Ukraine has caused political instability and economic uncertainty, Russia is only predicted to lose a net 3,000 millionaires this year, a significant decrease from 8,500 in 2022.
Following the United Kingdom, which may lose a net 3,200 millionaires this year—double the number it lost the year before—Russia is ranked fourth by Henley & Partners.
“Brexit has made the UK less hospitable and welcoming to high-net-worth individuals. It’s now harder for them to move between the UK and EU countries,” Trevor Williams, visiting professor at the University of Derby and former chief economist at Lloyds Bank Commercial said in the report.
“Evidence shows that the UK’s share of inward investment into Europe has declined since it left the EU, with Germany and France benefiting.” 
In terms of attracting the greatest net number of millionaires this year, Australia might surpass the United Arab Emirates. A net 5,200 millionaires are anticipated to go to Australia, while 4,500 will move to the UAE. Singapore comes in third and may see a net 3,200 millionaires settling there.
According to the study, Western countries remain a popular choice for millionaires, with the U.S. (2,100), Switzerland (1,800), and Canada (1,600) all securing seats in the top 10.
“There’s been a steady growth in millionaire migration over the past decade, with global figures for 2023 and 2024 expected to be 122,000 and 128,000, respectively,” Juerg Steffen, CEO of Henley & Partners, said.