Wealthy Chinese citizens have moved hundreds of billions of dollars out of the mainland this year by buying apartments overseas, plus stocks, insurance policies and gold, according to a report by the New York Times, which said the outbound shift of money indicated unease about China’s sputtering recovery after the Covid pandemic, as well as “fears about the direction of the economy” under Xi Jinping after this crackdowns on business and bolstering of the government.
An estimated $50 billion a month has been taken out of China in 2023 by Chinese households and private companies, but that did not pose an imminent risk to the country’s $17-trillion economy because exports of manufactured goods were still bringing in a steady stream of funds, the report said, noting that families were opening bank accounts in Hong Kong and wiring $30,000 to $50,000 into insurance products.
Read the full report: The NYT.
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