When ‘Zero Corona’ is over, large numbers of Chinese rich people leave China, capital-brain drain

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Corresponding article – Captured from Bloomberg

Bloomberg News reported on the 25th (local time) that Chinese rich people who suffered from zero corona are migrating abroad as the Chinese authorities completely lifted the ‘zero corona’.

Bloomberg reported this, citing well-known immigration advisory firms.

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Immigration companies revealed that after the end of the zero corona, many Chinese rich people are traveling abroad in large numbers to check overseas real estate or move abroad.

Rich people who suffered from the Chinese authorities’ unreasonable zero corona are rushing to immigrate.

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Bloomberg predicted that if the rich move abroad in earnest, it could shock the financial market, such as a sharp drop in the yuan, and a ‘brain drain’ (brain drain) in the world’s second largest economy could start in earnest.

After confirming that President Xi Jinping has been in office for the third consecutive year and laying the groundwork for lifelong rule, he is shouting ‘shared wealth’, and the rich in China, whose freedom has been greatly restricted due to the strict ‘zero corona’ over the past two years, are greatly frightened.

In this situation, as ‘Zero Corona’ is lifted, the Chinese Exodus (Great Exodus) phenomenon of Chinese rich people is taking place.

Sovirovs, a Canadian immigration law firm, said it was seeing a surge in requests from Chinese clients seeking to immigrate to North American countries.

“Chinese clients want to get out of China as soon as possible,” said Perugia Davalova, the firm’s senior lawyer.

As a result, a drain of capital as well as brains is expected to be inevitable.

Even before the pandemic, China faced about $150 billion in capital outflows every year because of people trying to go abroad.

However, if the exodus of the rich in China is in full swing, much more capital will flow out than this.

This will cause the yuan to weaken, which is expected to have a great impact on the Chinese financial market.

In addition, the outflow of human resources abroad is expected to be serious. In particular, young people working in IT companies are in a hurry to immigrate because they like the free atmosphere. This could lead to a large-scale outflow of talent, which could have a great negative impact on China’s economic growth.

The departure of the Chinese rich has already begun last year. About 10,800 Chinese immigrated last year, according to Henley & Partners, an investment immigration consulting firm. This is the highest since 2019, before the corona outbreak. It ranks second in the world after Russia, which is at war with Ukraine.

The company said that since the end of the zero corona, immigration inquiries from Chinese people have increased more than four times compared to the previous month, and that rich Chinese people seem to be in a hurry to leave China.

American investment banks are responding quickly to this demand. Bloomberg reported that JP Morgan Chase, a famous investment bank in the United States, has placed employees fluent in Mandarin in the San Francisco Bay Area, which is favored by Chinese.

Source: Donga

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