Where are China's ultra-rich parking their wealth amid a slowing economy?

China's ultra-wealthy population — people with a net worth of at least $30 million — is expected to increase by almost 50% in a few years, according to projections in a recent Knight Frank wealth report.

At a time when China's economy is facing headwinds, and growth has been slowing, where are the Chinese ultra-rich, whose numbers are expected to swell to 144,897 by 2028 from 98,551 in 2023, parking their wealth?

The current investment direction of the wealthy Chinese is a "conservative" one, with their funds flowing into international assets against the backdrop of a stalling Chinese economy dragged by a beleaguered property sector, wealth managers told CNBC.

However, the country's high-end property market remains a favored asset.

"There has been a noticeable increase in transactions within Shanghai's luxury real estate sector," said James Macdonald, head of China research at global real estate firm Savills, attributing it to a recent policy easing by the government.

China has relaxed several restrictions on property purchases, which has led to an increase in new high-end property launches in downtown locations, addressing pent-up demand, he added.

In May, the government reduced the number of years people were required to pay tax in Shanghai before they could purchase property to three from five. Down payment ratios for first-time buyers have also been cut to 20% from 30%.

Luxury residences, especially in Shanghai, have been a good investment for local high-net-worth individuals and rich families in recent years due to their scarcity, said Sam Xie, CBRE's head of research in China.

According to data provided by Xie, the transaction volume for newly built residences priced at a minimum $2.75 million per unit grew 38% year on