Rich folks in China simply want to leave the country.
That is not even news, to be perfectly clear. A survey did point out that more than a year ago, and survey after survey is pointing to the same conclusion.
(...) In case you are not already familiar with Prof. Victor Shih’s theory about capital flight from China, enough capital outflow from China (US$1 trillion or more) would cause huge liquidity problem in Chinese banking system, and the wealthiest 1% of Chinese households would be enough to cause that shift of capital should they decided to leave the country, move the money away, or whatever. And that shift might be happening already (albeit rather slowly), as manifested in the slow but consistent money outflow away from China since late last year, which, as we said, is already tightening liquidity in the banking system whichnecessitates multiple rounds of liquidity injection in China.Source: alsosprachanalyst
Why are rich Chinese people moving abroad? 1. They do not really trust the Communist government which could take away their wealth. 2. They are looking for safer, cleaner places where their children can get better education than in China. 3. Many experts and forecasters expect the Chinese economy to experience a 'hard landing': If economic growth plunged, impoverished and furious Chinese people could decide to riot. Better run before all hell is gonna break loose!
