But analysts say there is another reason the Chinese rich are fleeing: to protect their fortunes. With the Chinese government cracking down on corruption, many of the Chinese rich ho made their money through some connection or favors from government ant to stash their money in assets or countries that are hard for the Chinese government to reach.
According to WealthInsight, the Chinese wealthy now have about $658 billion stashed in offshore assets. Boston Consulting Group puts the number lower, at around $450 billion, but says offshore investments are expected to double in the next three years. A study from Bain Consulting found that half of China's ultrawealthy hose with $16 million or more in wealth ow have investments overseas. The mass millionaire migration out of China is also hitting luxury companies hard. Hurun said China's luxury sales last year fell 15 percent he biggest drop in over a half a decade. Spending on gifts, which made up a sizable portion of luxury sales, fell 25 percent.
Bentley Motors last week said that its sales in China slowed last year in part because of "the migration of high net worth individuals from China." In other words, it isn't that wealthy buyers in China are spending less hey're just disappearing. Most are looking for permanent residences, Hurun said. The United States was their top destination, which any real estate agent in San Francisco, Seattle or New York can confirm. Europe is their second favorite destination, followed by Canada, Australia, Singapore and Hong Kong.
