Shocking $300B Exodus! China’s Rich Move All Their Money Abroad, 10,000 Millionaires Have Left

Wealthy people in Shanghai are leaving in large numbers. They're moving abroad. That's what's happening. Rather than people in Shanghai simply getting poorer. When the wealthy start leaving in large numbers, most people don't know what's happening. By the time they realize something's wrong, the rich already have a plan in place. History shows that the wealthy leave for more than just a lack of opportunity. There are three warning signs. First, property rights start to look less secure. Second, tax policies become more punitive. Third, restrictions make it easy to move money in and hard to get it out. When two of those signs appear together, wealthy people People often start preparing. They quietly move assets and line up an exit before they leave. The ones who see the danger early are often gone by the time it arrives. Ordinary people rarely get advanced warning of major changes. Figures circulating online show that about 15,000 people worth at least 1 million U.S. dollars moved abroad from mainland China in 2024. In 2025, 7,800 millionaires left China. In its latest report, released in June, Henley and Partners stopped forecasting how many wealthy people would move in and out of individual countries. It still listed China among the countries where moving wealth abroad faces restrictions and hurdles. That raises the question of how much wealth they took with them. One estimate circulating online puts the wealth tied to rich Chinese people moving abroad in 2024 at 530 billion yuan, roughly 79 billion US dollars. That's roughly the size of Myanmar's economy. Another estimate puts the wealthiest of Chinese people who moved abroad from 2024 through the first half of 2025 at about 11,200. Their assets may have topped 1.3 trillion yuan, about 193 billion dollars. These figures remain unverified. Even if some of those assets moved abroad, the amount could still be substantial. Hong Kong, Singapore, and the United States have become popular places for wealthy Chinese people to hold assets outside mainland China. Hong Kong and Singapore are close to mainland China. Both offer established financial services and rank among Asia's leading wealth management centers. Many wealthy families set up family offices there. They also use places like the British Virgin Islands and the Cayman Islands to set up companies or trusts, manage assets, plan for taxes, and pass wealth on to the next generation. Keith Tan, who heads Golden Acacia Capital in Singapore, says this is becoming more common. His wealthiest clients tend to choose large private banks. Those with less money typically go with smaller banks or online brokers. In Tokyo's Shinagawa district, a real estate seminar for wealthy Chinese buyers took a surprising turn. Halfway through the seminar, veteran Japanese real estate expert Tomohiro Makino asked more than 20 Chinese people in Half joking. If anyone had bought a luxury home in Tokyo's Minato Ward that cost 3.4 million U.S. dollars. The room stirred. A middle-aged man in the back calmly raised his hand. What surprised the crowd even more was that he'd pay the full price without taking out a loan. The Japanese outlet President Online reported the exchange. Makino is well-known in Japanese real estate. He worked for property giant Mitsui Fudo-san and held a senior role at a Japanese real estate investment trust. He recalled that a Chinese travel agency he'd never dealt with got in touch and asked him to explain Tokyo's housing market to a tour group of wealthy Chinese visitors. The agency told him several of his real estate books had been translated into Chinese and were popular in China. The group had specifically come to hear him speak. The agency also told him Its clients were keen to buy luxury homes in Japan. Right after the talk, they planned to tour properties in upscale areas such as Tokyo Bay and Roppongi. The group showed a keen interest in Tokyo real estate and spoke up whenever they had a question. The man who paid 520 million yen in full gave Makino a first-hand look at how much those buyers could spend. Makino says wealthy Chinese buyers putting hundreds of millions of yen into Japan are looking for more than a return on their investment. As China's economy has slowed and its political climate has grown more uncertain, more wealthy Chinese people have moved to Japan over the past two or three years. Kei Nakajima, a Japanese journalist familiar with the Chinese community in Japan, says the pandemic was followed by a wave of wealthy Chinese people moving to Japan and buying luxury homes. Makino said economic factors still play a role, but unease about the political climate has become a bigger reason for Chinese people to move to Japan. China's Ministry of Finance and State Taxation Administration issued Notice No. 21 on July 24, tightening oversight of personal income from offshore trusts. Income earned through an offshore trust is subject to Chinese tax oversight if the person is a tax resident of China. Any income that falls under its rules is still taxable. The policy gave eligible taxpayers a 90-day transition period to declare and pay back taxes by October 20th to avoid late fees. What drew even more anger came just before the deadline. On October 19th, tax officials issued six additional rules. Interest on money borrowed through an offshore trust could no longer be used to offset taxes. Corporate income tax, already paid by an overseas company, could not directly offset personal income tax. Past trust management costs were also excluded, and some previously untaxed profits now had to be included. The guidance also spelled out which employee equity incentive trusts qualify, and how much tax must be owed before authorities can extend the deadline for recovering it. Some wealthy people in China could end up owing far more than they expected. The policy came out in July, but officials waited until the filing deadline was close to clarify those key details. Taxpayers dealing with several countries, complex trusts, and years of income had just three days to recalculate what they owed, prepare paperwork, and file. The late release also raised the question of whether taxpayers should have been given more time. The Chinese Communist Party's government was focused on collecting revenue and gave those concerns little consideration. Some wealthy people see a government eager to collect more tax without fully weighing the impact. They worry that rules could change again without warning. What matters to them is how much they can keep and whether taxes might suddenly rise. If they lose confidence in the rules, they may move assets early and look for options abroad. Foreign media have reported that some wealthy Chinese people are moving money from Hong Kong and Singapore to the United States. CNBC says private banks in Hong Kong and Singapore have heard from more wealthy Chinese clients since July. Many are considering moving assets to the United States, and some opened American bank accounts in less than two months. More than 100 countries and jurisdictions take part in the Common Reporting Standard, or CRS. It allows tax authorities to share bank account information about foreign tax residents. Hong Kong and Singapore participate. The United States stays outside the system, so U.S. banks do not have to send Chinese clients information to China automatically through the CRS. That makes the United States an option for wealthy people concerned that Chinese tax officials could learn about their overseas assets. Some banks in New York have begun actively courting these clients. Keith Tan of Golden Acacia Capital in Singapore says some clients move assets to the United States to plan for the next generation and reduce future tax bills. Families whose children already have U.S. green cards are especially likely to use American trusts. If they meet the requirements, these arrangements can legally lower some of their taxes. States with relatively favorable tax rules, such as Nevada and Florida, are popular places to set up these trusts. Some advisors warn that moving money to the United States still carries tax risks. Clifford Ng, a partner at Zhonglun Law Firm in Hong Kong, says Chinese tax officials may already know about assets these clients keep in Hong Kong and Singapore. Moving the money around now could leave bank records that authorities could still trace. Chris Tsao, a lawyer at W&H Law Firm in Beijing, says moving money to the United States leaves past tax obligations in place. If income was never declared as required by law, tax authorities could still collect what's owed. Getting large sums out of China is becoming harder. Jingkuan Lin, a private banker in Singapore, says it may become even harder to send large amounts abroad from inside China. People who already hold assets overseas can still move their money with some flexibility. Those who kept their wealth in China could face more restrictions. As the Chinese Communist Party rolls out more revenue-raising measures and repeatedly changes the rules, a growing number of wealthy people are among the first to feel the effects. A Bloomberg investigation found that at least eight Chinese entrepreneurs among the world's richest 500 people may be affected by the offshore tax rules. The offshore trusts at issue hold assets worth HK$36.9 billion for NetEase founder Ding Lei, HK$29 billion for Pinduoduo founder Huang Zheng, and HK$20.7 billion for Xiaomi founder Lei Jun. The figures also include HK$15.8 billion for Zhonghui Juan of Hanso Pharmaceutical. $15.4 billion for China Hongqiao chairman Zhang Bo and his family, $10.2 billion for PopMart founder Wang Ning, $6.9 billion for SITC international shareholder Zhang Xiaopeng, and $5.2 billion for Antigroup chairman Ding Shizhong. Public exchange filings show that all eight hold shares in their companies through offshore trusts. Their holdings are worth a combined 140.2 billion U.S. dollars. Divided among China's 1.4 billion people, that would come to 670 yuan each. Most of the trusts are in low-tax jurisdictions, such as the British Virgin Islands and the Cayman Islands. Chinese tax authorities have yet to publicly name any of these individuals or demand payment from them. It remains unclear whether they owe back taxes or how much they might have to pay. An unverified list that appears to have come from mainland China is also circulating online. It names wealthy individuals said to owe large sums in back taxes. The list puts Pinduoduo founder Huang Zheng and Xiaomi founder Lei Jun at 50 billion yuan, about 7 billion US dollars each. It lists Alibaba founder Jack Ma at about 2.45 billion dollars, and Xiaomi co-founder Lin Bin at about 2.1 billion dollars. The list also puts hotpot chain Heidi Lau's founder Zhang Yong and his wife at about 10 billion yuan, or 1.4 billion dollars. It puts JD.com's Liu Qiangdong at about 1.4 billion. Dolly Foods' Xu Shihui at about $1.33 billion, Long For Group's Wu Yajun at about $1.19 billion, Meituan's Wang Xing at about $1.12 billion, and Horizon Robotics' Yu Kai at about $294 million. The amounts listed to run into the billions or tens of billions of yuan. The higher tax oversight has already prompted some wealthy Chinese people to rethink how they hold assets abroad. Wealth advisors and lawyers are said to be helping wealthy families review old records. They're going through transactions one by one, starting with the day the assets went into offshore trusts. They need to work out how much the trusts earned over the years and which income might be subject to back taxes. For families with large holdings, that can be a complex calculation. Some wealthy people have even started selling stock to raise cash for their tax bills. Founder of job website Boss Zhiping, Zhao Peng, sold about 110 million US dollars in company stock in September. Bloomberg cited people familiar with the matter, who said the sale was tied to raising money for taxes. The sale at Heidi Lau was even larger. Also in September, co-founder Xu Ping sold up to $353 million in Heidi Lau stock through a holding company owned by a family trust. Heidi Lau then announced plans to give founder Zhang Yong a short-term loan of up to 100 million yuan or 14 million U.S. dollars. It described the cause as personal financial arrangements. The market saw the loan as a way to raise money for back taxes. Some analysts say the rules may hit hardest for founders of Chinese companies listed in Hong Kong or the United States. That includes those who used offshore trusts to sell large stakes when company valuations were at their peak between 2014 and 2020. If any taxes went unpaid back then, the founders could now owe back taxes and substantial late fees. Wealth advisors estimate that tax bills could range from a few million yuan to several billion yuan. depending on the person. Those bills have some wealthy people looking for ways to deal with them. Some consider splitting up or closing their offshore trust to settle the matter all at once. They may still owe the full tax bill plus legal and management fees. They could also lose some of the protection the trusts give their assets or make it harder to pass on their wealth. Others are looking at changing citizenship, hoping a new passport will help them shed a large tax bill. Ryan Lin, a director at Bayfront Law, says more wealthy people have asked about giving up Chinese citizenship since Beijing rolled out the new offshore trust rules in July. The rules impose a 20% tax on some overseas income and transactions. Lin says most of these clients used to just talk Now, they are more seriously considering it, and some are getting ready to act. Investment Migration from Savvy and Partners says inquiries from Chinese clients have risen 33% since July. Another firm, Global Citizen Solutions, says related inquiries are up nearly 40% from the same period last year. Wealthy Chinese are looking beyond passports from the United States and Singapore. Some Caribbean island nations have become popular with those who want a second passport quickly. Several Caribbean countries, including Antigua and Barbuda, offer citizenship by investment. Eligible foreigners can apply for citizenship by making an investment or donation. Some government-approved real estate projects require a minimum investment of around US$300,000. Sandy Westallers. Applicants can also invest in a local business or donate to a government-designated development or public benefit fund. For wealthy applicants, part of the appeal is how quickly the process can move. In some Caribbean countries, citizenship can take as little as about six months. In Europe and the United States, applicants generally need residency first. Then they have to meet certain conditions before applying for citizenship, which can take much longer. Many wealthy Chinese applicants have little intention of moving to the Caribbean. They want more flexibility in how they manage overseas assets, travel internationally, and decide where to live. Some wealthy families are also looking at Europe, where Portugal remains a popular choice. Its golden visa grants residency. Investors who qualify may be able to apply for citizenship later. Italy draws wealthy families with tax breaks, international schools, and established financial services. Hungary is also attracting Eligible applicants can seek long-term residency by making a qualifying investment of at least 250,000 euros. Some wealthy applicants are planning to get to Singapore in stages. They aim to get a passport quickly through a Caribbean citizenship by investment program, then apply for permanent residency in Singapore as foreign citizens. The eventual goal is Singaporean citizenship. The Caribbean passport would be the first step. Money alone cannot guarantee approval. Caribbean citizenship programs and Singapore's permanent residency and citizenship applications each have their own requirements. Manish Tibrewal, co-founder of wealth manager Faro Capital, says many wealthy Chinese families have started looking for foreign passports. His firm is helping some apply for citizenship in Caribbean countries. The decision rests with the governments there. Getting a new passport may do little to clear a tax bill. Under Chinese tax law, foreign citizenship or permanent residency abroad does not automatically end a person's tax obligations in China. Tax officials still look at factors such as a person's domicile, where they actually live, and where their income comes from. China does not recognize dual citizenship. Becoming a citizen of another country usually means losing Chinese citizenship. Authorities can still pursue taxes that were due in the past. Future tax obligations may change if a person's tax residency changes. Closing a trust or changing citizenship offers no automatic way to clear back taxes. Ryan Lin of Bayfront Law says wealthy people who are prepared to give up Chinese citizenship have often already moved most of their assets and business operations abroad. They have few ties left to mainland China. The decision is harder for those whose businesses, assets, and financial interests are still deeply rooted there. Denton's Rodic partner Bai Lu, stationed in Singapore, says many wealthy clients are caught off guard at first. They quickly began preparing to pay and went through their expenses to see exactly what they could deduct. They knew Beijing could figure out what they owed from public IPO filings and acquisition notices. In her words, no one can escape. The 2026 budget released by China's Ministry of Finance puts the national deficit at about 825 billion US dollars. just shy of 6 trillion yuan. If a billionaire were worth 10 billion yuan and sold everything, it would still take the full fortunes of 589 people that wealthy to cover this year's deficit. Even at about 14 billion dollars per person, it would take nearly 60 fortunes. The eight Chinese business leaders mentioned earlier hold about 140 billion dollars between them. Even if all those assets were sold, the proceeds would only cover about 16 percent of of the deficit. That deficit is what the government plans to borrow in a single year. It leaves out the large amount local governments already owe. By the end of 2025, official local government debt in China stood at about 7.67 trillion US dollars. The International Monetary Fund says the debt burden is much heavier if we include hidden debts, such as those owed by local government financing vehicles. Local government debt is climbing even as a major source of revenue keeps shrinking. China took in only about 1.6 trillion yuan, or $224 billion, from land sales in the first three quarters of 2026, a drop of nearly 28% from a year earlier. The cost of servicing that debt is also rising. In the first quarters of 2026 alone, the government spent about $444 billion on interest, up 4.7% from a year earlier. The amount originally borrowed still has to be repaid. The IMF projects that if some hidden debt is included, China's public sector debt in 2026 will reach 135% of its annual economic output. How much Beijing will collect in back taxes remains unclear. Private business owners once credited with helping China build its economy are now being trapped to help close the budget gap. If taxes on the wealthy still leave a shortfall, more of the pressure could fall on ordinary people. Then household finances across China could come under strain as well.