Image courtesy of Rolls-Royce
High-net-worth individuals from China highly favor the United States for real estate purchases, with a positive sentiment shared across 66 percent of the demographic.
A recent white paper from Hurun revealed that almost half of high net worth Chinese individuals put stock into overseas investments with 75 percent of total investments. Wealthy Chinese consumers are also highly interested in Australia, Canada, the UK and Japan to place their top investments overseas.
"I believe that when we look back in ten years, should be considered the beginning of 16 years of overseas investment was just very happy to be the first to provide Chinese and overseas financial services business CITIC Bank to Bank issued ‘China's high net worth population trend in domestic demand and the white paper,’” said Rupert chairman and chief researcher at Hurun Report. “I hope this report will help interested in going abroad and abroad needs of high net worth crowd. "
Overseas investments
Chinese consumers are also highly invested in youth’s education with 56 percent of wealthy individuals in China investing heavily in their family’s education. More than half of these individuals will be increasing their overseas investments, especially in the U.S.
Chinese shoppers
The main reason cited for overseas investments is risk management, meaning wealthy Chinese consumers believe their assets are safer overseas. These HNWI are mostly interested in financial investment, home ownership, immigration, education and tourism for their overseas investments.
Bank selection is a major driver in overseas investment decision-making, followed by securities, fund and futures companies and insurance options.
Chinese Yuan
Overseas travel is another large investment for HNWI from China, with the average days spent aboard being 10, three times a year with a per capita cost of $ 50,000. The main reason for travel is leisure, with 43 percent of consumers believing this to be their top reason and 27 percent interested traveling around the world.
Europe is the most desired travel destination within the next three years.
Other insight
In the next three years, 60 percent of high-net-worth Chinese consumers are likely to purchase investment real estate properties in the United States, especially in Los Angeles, San Francisco and Seattle.
According to the 2016 White Paper on China investment immigration from Hurun Institute, about 15 percent of financial investments from affluent Chinese consumers came from overseas. More than half of HNWI in China worry about the devaluation of their investments (see more).
Wealthy Chinese individuals’ philanthropic donations rose 50 percent year over year in 2016, according to another Hurun Report.
Hurun’s rankings of China’s 100 most generous philanthropists found that the top Chinese donors were most apt to support education and disaster relief, with half of the list giving funds to causes in those two categories. Almost one in seven individuals who made the list are new to the rankings, showing a diverse, large audience for institutions that rely on the deep pockets of ultra-high-net-worth individuals for funding (see more).
"As the first abroad to provide financial services to commercial banks, China CITIC Bank has always been committed to the professional, comprehensive and thoughtful service to meet customer needs in terms of abroad We are very pleased to work with the world's best,” said CITIC Bank Deputy Governor Guo Huai Party. “Leading research groups of high net worth Chinese authorities Hurun released with ‘high net worth Chinese people and overseas demand trends White Paper,’ hoping to provide more and better solutions to meet our high net worth clients in domestic demand. "