As Borders Open, the 'China Exodus'... Wealthy Chinese Packing Up

International Real Estate Inquiries Surge and 'Immigration' Searches Increase Fivefold
Concerns Over Foreign Exchange Reserves Outflow and Pressure for Yuan Depreciation

[Asia Economy Beijing=Special Correspondent Kim Hyunjung] Following China's reopening of its borders last month and the abandonment of the zero-COVID policy, wealthy Chinese are showing signs of trying to leave the country. Some even predict that, short of full immigration, the increasing number of Chinese leaving or traveling abroad could lead to a sharp decline in foreign exchange reserves.

On the 25th (local time), Bloomberg cited data from international real estate brokerage firm Juwai IQI, reporting that inquiries from mainland Chinese about international real estate purchases have increased by 55% this year compared to the previous year. This figure had decreased by 26% in 2021 compared to the previous year and by 11% last year.

[Image source=Reuters Yonhap News]

Following China's announcement of easing quarantine measures, the number of searches for "immigration" on the Chinese messenger WeChat reached 110.7 million on the 26th of last month, a fivefold increase compared to the previous day.

Many have already left China during the COVID-19 outbreak phase. Information analysis firm New World Wealth reported that 10,800 wealthy Chinese emigrated overseas last year, the highest number since 2019, indicating that the overseas migration of China's wealthy has already begun. The scale of wealthy emigrants from China was the second largest in the world, following Russia (15,000 people).

Canadian immigration law firm Sobirovs stated, "We have seen a surge in consultation appointments from people fed up with the Chinese government over the past six months," adding, "Chinese clients want to immigrate as soon as possible."

Even without actual immigration, concerns have been raised that the surge in overseas travel could lead to a sharp decline in China's foreign exchange reserves. Chen Zhu, Chair Professor at the University of Hong Kong, said, "If millions of Chinese travel abroad this year, China's foreign exchange reserves could decrease by $100 billion to $200 billion (approximately 123 trillion to 246 trillion KRW)," adding, "This would put downward pressure on the yuan's valuation."