China to see biggest millionaire exodus in 2024 as many head to U.S.

NEW YORK -- China saw the world's biggest outflow of high-net-worth individuals last year and is expected to see a record exodus of 15,200 in 2024, dealing a further blow to its economy, a new report says.

Uncertainty over China's economic trajectory and geopolitical tensions are top of mind for many Chinese millionaires, in dollar terms, who choose to leave their country, according to the report by investment migration firm Henley & Partners. The U.S., China's international archrival, stands out as the top destination, according to the researchers.

China last year saw 13,800 high-net-worth individuals depart, mostly to the U.S., Canada and Singapore, the firm found. Such individuals, abbreviated as HNWIs, are defined as those with at least $1 million in assets.

Henley & Partners said it was difficult to know how much wealth was taken with the emigrants, but "in our experience the HNWIs that normally move most are the ones with between $30 million and $1 billion in wealth," said Andrew Amoils, head of research at New World Wealth, a wealth intelligence firm that collaborated with Henley & Partners on the report.

The large number of rich Chinese heading elsewhere could add to the strain on the nation's fragile economy. A prolonged property crisis has sunk large developers and badly dented the country's wealth, while weighing on debt-laden local governments. The International Monetary Fund earlier this year said the China faces "high uncertainty" due to the real estate turmoil. Fitch Ratings downgraded China's sovereign credit outlook to negative in April, following a similar move by Moody's Investors Service last December.

Rich Chinese paused their efforts to move themselves and their fortunes offshore during the COVID-19