Lots of new billionaires are cropping up in China – with a catch:
The Chinese mainland added an average of two new billionaires to its super-rich list every week last year, according to new report, helping Asia replace the U.S. as the world’s most fertile cradle for individual wealth.
The report released Thursday by the investment firm UBS AG and consultancy PricewaterhouseCoopers (PwC) said 101 of the 162 Asians whose personal wealth passed the $1 billion threshold for the first time in 2016 were Chinese citizens.
China’s new billionaires helped boost Asian membership of the ultrawealthy club to 637 last year, compared to 563 in the U.S., according to the firms’ annual Billionaires Insight Report. It marked the first time that Asia could be called home to more billionaires than the U.S.
The report covered 1,542 billionaires residing in 14 markets worldwide. They account for about 80% of all individual wealth held by the world’s super-rich.
The catch is pointed out by economist Christopher Balding:
This omits one key issue: if you are a billionaire in China, you are only a billionaire in China. You are not a global billionaire
Woke Charles Bingley
why is that?
Officially, you are allowed to move $50k per year out of China. Unofficially you can move a little more but definitely not enough
Woke Charles Bingley
Wow I did not know that!
If you really wanted to you could find ways to move more than that but no where near tens or hundreds of millions
Some seem to be able to buy English Football Clubs and American film studios though.
Those deals haven’t happened for a while
They have tightened up a lot recently. It’s like Greece & Russia the smart or connected ones have already got their money out
assets are still on the Mainland. Just because its owned by a Cayman holding corp doesn’t mean the asset is out of the country
Like Wolverhampton Wanderers or Birmingham City or Aston Villa all owned by Chinese “businessmen”
It’s only $50k of personal wealth. If you are a Chinese billionaire your company can buy overseas assets, eg London property, and sell on.
2017 has really cracked down on any movement and definitely not enough to move significant portion of wealth if desired
Robert Wishart 魏罗斌
Because you cannot move your money abroad?
Exactly. Not any material amount
“Captive billionaires” might be a better term for people who are billionaires within the borders of China, but millionaires everywhere else.